The earliest type of exchange involved _____

Consider the two graphs above. Suppose that the domestic currency is expected to strengthen. This would ________ the desired level of the capital stock, as depicted in graph ________

A) increase; B B) increase; A C) decrease; B D) decrease; A

Two identical firms that share a market and produce a homogeneous good will find which of the following market outcomes LEAST desirable?

A) Bertrand Oligopoly B) Cournot Oligopoly C) Cartel D) All are equally preferable.