In the above figure, as more ukuleles are produced, the opportunity cost in terms of guitars is

Firm X's total fixed costs are $1,000. Its total variable costs of producing 100 units are $2,000, and its total variable costs of producing 200 units are $4,000. Which of the following will happen to firm X's average costs as it increases output from 100 to 200 units?

a. Average costs increase. b. Average costs decrease. c. Average costs remain constant. d. Average costs increase slightly.

The buying and selling of foreign currency by the central bank is a trade policy whose objective is:

A. reducing purchases of assets abroad. B. stabilizing the exchange rate against external shocks. C. stabilizing the interest rate against foreign capital outflows. D. promoting long term economic growth.