If the Minimum Efficient Scale in the Production of Rubber

question 131

Multiple Choice

If the minimum efficient scale in the production of rubber exceeds the quantity of rubber any individual tire producer buys, _____.​

• A)tire producers should pay a low price for the rubber input
• B)tire producers should increase the usage of rubber in production
• C)tire producers should not integrate backward into rubber production
• D)tire producers should be charged a price that is above the cost of producing rubber
• E)tire companies should switch their resources to fiberglass production

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