Other things the same, the real exchange rate between American and Chinese goods would be higher if
a. prices of Chinese goods were higher, or the number of yuan a dollar purchased was higher.
b. prices of Chinese goods were higher, or the number of yuan a dollar purchased was lower.
c. prices of Chinese goods were lower, or the number of yuan a dollar purchased was higher.
d. prices of Chinese goods were lower, or the number of yuan a dollar purchased was lower.
c
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The difficulty in analyzing oligopolistic behavior arises from the
A. degree of government regulation of the market structure. B. interdependent nature of oligopolistic decisions. C. large number of firms in the industry. D. market power of consumers.
When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is appropriate to ignore that the market price includes a margin above marginal cost b. Consider whether the product on the market includes costly features your downstream division does not use c. it is OK if the product on the market is inexpensive because its quality is lower than you use d. if it is similar enough, it is justification for you producing it in-house
If the price elasticity of demand is 4 and the price of migraine medicine increases by 6%, what will be the percentage change in quantity demanded?
a. 6% b. 4% c. 24% d. 67%
Initially the two vendors set up at the ¼ -mile mark and the ¾-mile mark in order for each to minimize its transportation costs. Eventually they both locate at the ½-mile mark. Which of the following statements is true?
a. Both vendors raised their transportation costs by moving to the center.
b. The initial setup is the Nash equilibrium.
c. The initial setup is a stable equilibrium.
d. Vendor A lowered its transportation costs by moving to the center.