When a U.S. importer needs 20,000 to settle an invoice for 228,000 Uruguayan pesos, the price of 1 ...

When a U.S. importer needs 20,000 to settle an invoice for 228,000 Uruguayan pesos, the price of 1 dollar is 11.4 Uruguayan pesos.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

Which of the following exemplifies an intangible durable strategy used by firms to prevent competition?
 a. Merging with its competitors
  b. Using brand name or trademark as a reflection of product quality
  c. Advertising
  d. Investing in specific assets

QUESTION 3

In a monopolistically competitive scenario, the demand curve for an existing firm ____ when firms exit the industry.
 a. becomes more inelastic
  b. becomes vertical
 c. becomes horizontal
 d. becomes more elastic

QUESTION 4

If the euro per dollar exchange rate changes from 1 = 0.8 euros to 1 = 0.7 euros, it implies that the euro has depreciated against the dollar.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

Which of the following industries can create barriers to the entry of new firms due to size and specificity?
 a. A hydroelectric power plant
  b. A garment manufacturer exporting apparels
  c. An owner of a retail chain
  d. An automobile manufacturing company

QUESTION 6

Which of the following does not happen when new firms enter a monopolistically competitive industry?
 a. The demand curve for each of the existing firms will fall.
 b. The demand curve for each of the existing firms will move inward.
 c. The demand curve for each of the existing firms will becomes relatively more elastic.
  d. The demand curve for each of the existing firms will shift to the right.