In a fixed exchange rate system, speculation regarding an ...

[geodog55]

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?

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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.

[geodog55]

Thanks for the timely response, appreciate it

[sarah_brady415]

Wow, this really help