If a bushel of corn sells for $2 in the United States and for 4,000 COP (Colombian peso) in Colombia, and if 1 dollar is worth 2,200 COP, then:
a. the corn is 400 COP more expensive in Colombia.
b. the corn is 400 COP cheaper in Colombia.
c. the price of a bushel of corn equals $2 in both the United States and Colombia.
d. the price of corn is 4,000 COP lower in Colombia than in the United States.
e. the price of corn is $0.20 lower in the United States than in Colombia.
b
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L-shaped isoquants imply that production requires that the inputs
A) are perfect substitutes. B) are imperfect substitutes. C) cannot be used together. D) must be used together in a certain proportion.
Indifference curves that are closest to the origin are preferable to ones that are farther from the origin
a. True b. False Indicate whether the statement is true or false
Under Section 2 of the Sherman Act,
a. firms cannot act in ways that increase prices b. contracts between parties are deemed binding c. firms cannot operate in perfectly competitive markets d. firms that earn short-run profits face penalties e. a firm cannot attempt to monopolize an industry
Every firm is constrained by the demand curve for the product it produces
a. True b. False