Exhibit 14-1 
-In Exhibit 14-1, suppose each tire produced requires ten pounds of rubber. Which of the following is true?
A) The tire manufacturer should integrate backward into producing rubber.
B) The tire manufacturer should produce more than 200,000 tires.
C) The tire manufacturer should buy rubber rather than produce it.
D) The rubber producer must be a monopolist.
E) The minimum efficient scale of rubber production is 2 million pounds.
Correct Answer:
Verified
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