A basket of goods cost $800 in the U.S. The same basket of goods costs $1,000 in France and the exchange rate is .80 euros per dollar. The same basket of goods costs 960 Australian dollars and the exchange rate is 1.2 Australian dollars per U.S. dollar. Purchasing power parity with the U.S. holds in

Toothpicks are sold in a perfectly competitive market. The market price is currently $3 per box of one hundred toothpicks

At its current level of production, a representative firm in the toothpick industry is producing at a level of output such that long-run average cost is $3.25 per box of one hundred toothpicks. Given this information, is the toothpick industry in equilibrium? Explain.

The economists of the Federal Trade Commission suggested rejection of Coke's merger with Dr. Pepper as it could:

a. increase overall competition in the soft drinks industry. b. lower Coke's share in the carbonated and soft drinks market. c. reduce the profitability of the entire soft drinks industry. d. allow Coke to profitably raise its prices by 5 to 10 percent.