Exhibit 7-1 -Refer to Exhibit 7-1. Total Output in the Market Is

question 89

Multiple Choice

Exhibit 7-1
-Refer to Exhibit 7-1. Total output in the market is 6 units. To achieve efficiency, Firm B should produce

• A)1 unit.
• B)3 units.
• C)4 units.
• D)5 units.
• E)6 units.

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Definitions:

US$1.00

The monetary unit equal to one United States dollar, the official currency of the United States of America.

C$ Weakens

When the Canadian dollar decreases in value compared to another currency, making it less valuable in foreign exchange markets.

€0.0211

A monetary value representing a little over two cents in Euro currency.

C$ Per €

The exchange rate showing how many Canadian dollars (C$) you need to purchase one Euro (€).