Suppose that the current exchange rate between the dollar and peso is $1 equals 10 pesos. If a firm in Mexico wanted to purchase $100,000 worth of U.S. televisions, how many pesos must they exchange?
A) 10,000 pesos
B) 100,000 pesos
C) 1,000,000 pesos
D) 11,000,000 pesos
C
You might also like to view...
If an average cost pricing rule is imposed on the firm in the figure above, the deadweight loss will be
A) zero. B) $150. C) $50. D) $250.
An industry utilizes capital and two types of labor. Unskilled labor is a substitute for capital while the skilled labor is complementary to capital. An increase in the price of capital will
A) cause the demand for labor to increase, raising wages of both skilled and unskilled labor. B) cause the wage of unskilled labor to rise relative to the price of skilled labor. C) induce the firms in the industry to cut back on all levels—capital, unskilled and skilled labor. D) cause the demand for skilled labor to rise and the demand for unskilled labor to fall.