Suppose that in the free market, where the supply of the foreign currency is equal to demand for that currency, the peso-dollar exchange rate is 4 pesos = $1
Assume the central bank sets an official exchange rate at 3 pesos = $1, we can say that in the official market the dollar is A) overvalued.
B) undervalued.
C) appreciated.
D) None of the above.
B
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Suppose Argyle Sachs has to choose between building a smaller sweater factory and a larger sweater factory
In the following graph, the relationship between costs and output for the smaller factory is represented by the curve ATC1, and the relationship between costs and output for the larger factory is represented by the curve ATC2. a. If Argyle expects to produce 3,600 sweaters per month, should he build a smaller factory or a larger factory? Briefly explain? b. If Argyle expects to produce 5,000 sweaters per month, should he build a smaller factory or a larger factory? Briefly explain. c. If the average cost of producing sweaters is lower in the larger factory when Argyle produces 6,500 sweaters per week, why isn't it also lower when Argyle produces 4,000 sweaters per week?
Marginal labor cost is measured by
a. MR × price b. MR × MC c. change in TR / change in MPP d. change in TC / change in labor hired e. change in TC / change in MPP
Refer to the following graphs to answer the question below.
Select the graph that best shows the changes in demand and supply in the beef market if a new diet fad favoring beef consumption becomes hugely popular, while cattle producers see steeply rising costs of cattle feed.
A. graph (1) B. graph (2) C. graph (3) D. graph (4)
Table 30.5Output (units)Labor (units)Output (units)Capital (units)101201262562383863Assume that in Table 30.5 the cost of labor is $4 per unit and the cost of capital is $6 per unit. In Table 30.5, what is the cost efficiency of the second unit of capital?
A. 56 units per $1 of cost. B. 9.33 units per $1 of cost. C. 6 units per $1 of cost. D. 36 units per $1 of cost.