If the euro continues to remain strong against the U.S. dollar, which of the following strategies would make the most sense for BMW?
A) It might be advantageous for BMW to consider exporting from Germany to the United States to take advantage of cheaper costs.
B) It might increase its manufacturing capacity in the United States to take advantage of the cheaper dollar.
C) It might consider raising prices in the United States to earn more profits for BMW.
D) It really doesn't make any difference to BMW since consumers will buy the cars no matter what they cost.
B) It might increase its manufacturing capacity in the United States to take advantage of the cheaper dollar.
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If an externality is present in a market, economic efficiency may be enhanced by
a. increased competition. b. weakening property rights. c. better informed market participants. d. government intervention.
Suppose at the current level of labor used, MRP = $100 and MFC = $50. To maximize profits, the firm should
A. reduce the level of labor. B. maintain the current level of labor. C. hire more labor. D. shut down.
The economic way of thinking would approach the question "Is this industry competitive?" by
A) counting the number of firms in the industry. B) comparing the ratio of prices to costs across the industry. C) assessing the freedom of entry into the industry. D) evaluating the actual structure of the industry to the competitive standards articulated in antitrust legislation.
When the price level rises, the long-run aggregate supply curve ________
A) shifts rightward B) does not shift C) slopes upward D) shifts leftward