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A tire producer is holding back tires to sell out at a large upcoming sale

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Opportunity Cost of Alternative Production:

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Opportunity Cost of Alternative Production:

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Glove production is not very profitable currently compared to tire sales

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Government limits subsidies to tire producers because of increasing debt

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New technology allows tire producers to make double the amount of tires in the same amount of time

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Number of sellers decreases due to bankruptcy

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Rubber is in excess and is very cheap in the current market