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Author Question: Refer to above figure. While selling exports it would also maximize its domestic sales by equating ... (Read 31 times)

DyllonKazuo

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on: Jun 30, 2018
Refer to above figure. While selling exports it would also maximize its domestic sales by equating its marginal (opportunity) cost to its marginal revenue of 5. How much steel would the firm sell domestically, and at what price?
 
  What will be an ideal response?

Question 2

A foreign exchange swap
 
  A) is a spot sale of a currency.
  B) is a forward repurchase of the currency.
  C) is a spot sale of a currency combined with a forward repurchase of the currency.
  D) is a spot sale of a currency combined with a forward sale of the currency.
  E) make up a negligible proportion of all foreign exchange trading.


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honnalora

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Reply #1 on: Jun 30, 2018
Answer to Question 1

4 million tons at 10/ton.

Answer to Question 2

C


DyllonKazuo

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

bitingbit

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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