Holding other things constant, an appreciation of the US Dollar to the Chinese Yuan might cause the demand for Yuan to _____________ and the supply for Yuan to __________.
a. Increase; decrease
b. Increase, increase
c. Decrease; Increase
d. Decrease; Decrease
QUESTION 2The cost function is:
a. a means for expressing output as a function of cost
b. a schedule or mathematical relationship showing the total cost of producing various quantities of output
c. similar to a profit and loss statement
d. incapable in being developed from statistical regression analysis
e. none of the above
QUESTION 3The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to just one type of customer
b. the costs of arbitraging the price difference across markets is small
c. the manufacturer acquires the distributer in the higher priced market
d. competition provides little ability for the manufacturer to price above marginal cost
QUESTION 4All these factors affect a country's exchange rates, except
a. Inflation
b. Interest rates
c. Employment
d. Price levels
QUESTION 5For a short-run cost function which of the following statements is (are) not true?
a. The average fixed cost function is monotonically decreasing.
b. The marginal cost function intersects the average fixed cost function where the average variable cost function is a minimum.
c. The marginal cost function intersects the average variable cost function where the average variable cost function is a minimum.
d. The marginal cost function intersects the average total cost function where the average total cost function is a minimum.
e. b and c
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