The fact that supermarkets, a land-intensive form of organization, have become the dominant form of grocery store in the United States suggests that:
A) there is little or no potential for input substitution in the grocery store business.
B) transportation costs are insignificant in the grocery store business.
C) land is a relatively inexpensive input in the grocery store business.
D) labor is relatively inexpensive in the grocery store business.
ANSWER
C
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