Author Question: If the minimum efficient scale in the production of aluminum exceeds the quantity of aluminum any ... (Read 205 times)

penza · **on:** Jun 30, 2018

If the minimum efficient scale in the production of aluminum exceeds the quantity of aluminum any individual siding producer buys, siding producers should integrate backward into aluminum production.
a. True
b. False

Question 2

If the same basket of goods costs 400 in the United States and 200 pounds in Britain, then according to the purchasing power parity theory,
a. goods and services must cost half as much in Britain as in the U.S.
b. the exchange rate should approach 2/pound
c. the exchange rate should approach 0.50/pound
d. goods and services must cost twice as much in Britain as in the U.S.
e. we cannot say anything about prices in the two countries unless we know the exchange rate