If the minimum efficient scale in the production of rubber exceeds the quantity of rubber any individual tire producer buys,
a. tire producers should integrate backward into rubber production
b. there will be a monopoly in rubber production
c. tire producers should not integrate backward into rubber production
d. tire producers will be charged prices above what the cost of producing rubber themselves would be
e. tire companies will switch to fiberglass
C
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Rank the following items in terms of most liquid to least liquid.
A) checkable deposits, cash, an office building your father owns B) cash, credit card, money market mutual funds, checkable deposits C) cash, checkable deposits, savings deposits, an office building your father owns D) cash, Microsoft stock certificates you own, checkable deposits
Louey's Greasy Spoon restaurant charges $15 for each dinner entree and $5 for each dessert selection, and they offer a dinner special that provide an entree and dessert for $18
If a diner at Louey's assigns zero value to dessert and $19 to an entree, what is their optimal decision? A) Buy the dinner special B) Buy only the entree C) Buy only the dessert selection D) We do not have enough information to determine the optimal decision