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If Sam Sells His Product for $10 Per Unit Net

Question 36

Multiple Choice

If Sam sells his product for $10 per unit net of costs and just breaks even after transporting it 5 miles to the market, Susan, who lives only 2 miles from the market will


A) experience lower profits
B) earn a location rent
C) find it profitable to purchase Sam's land
D) derive a consumer's surplus
E) none of the above

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