Author Question: If the minimum efficient scale in the production of rubber exceeds the quantity of rubber any ... (Read 105 times)

urbanoutfitters · **on:** Jun 30, 2018

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

Question 2

A fixed exchange rate is enforced by
a. national governments, who establish appropriate trade barriers for each country with whom they trade
b. national governments, who manipulate gold reserves appropriately
c. central banks, who buy and sell appropriate currencies
d. the International Monetary Fund, which offers loans to appropriate countries
e. local governments, who manipulate capital reserves appropriately