The exchange rate states the price, in terms of one currency, at which another currency can be bought.
Answer the following statement true (T) or false (F)
True
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Your U.S.-based company is doing business internationally. One way to mitigate exchange rate risk is to
A) require payment in US$. B) use a forward contract. C) use a futures contract. D) All of the above.
The average tax rate is defined as
A) total tax due/change in taxable income. B) total tax due/total taxable income. C) change in taxes due/change in taxable income. D) change in taxes due/total taxable income.
A monopolistic competitor will maximize its profits at the output level at which
A) TC = TR. B) MC = MR. C) the MC curve intersects the demand curve. D) MR = ATC.
If the demand curve is less elastic than the supply curve, then:
A. the buyers will bear a greater tax incidence. B. the sellers will bear a greater tax incidence. C. the buyers will bear a smaller tax burden than sellers. D. the sellers will bear a greater tax burden than buyers.