Author Question: In a fixed exchange rate system, speculation regarding an expected revaluation or devaluation of a ... (Read 88 times)

geodog55 · **on:** Jun 29, 2018

In a fixed exchange rate system, speculation regarding an expected revaluation or devaluation of a currency makes it more difficult to maintain the existing exchange rate.

Indicate whether the statement is true or false

Question 2

Comment on the following statement: The shape of a firm's long-run average cost curve is determined by both external and internal economies (or diseconomies) of scale.

What will be an ideal response?

asdfghjkl; · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

TRUE

Answer to Question 2

The statement is false. The shape of a firm's long-run average cost curve is solely determined by internal economies (or diseconomies) of scale. External economies (or diseconomies) of scale shift the firm's long-run average cost curve.