-Refer to the Table Above

question 89

Multiple Choice

$\begin{array} { l l c c l } \text { Country } & \text { Chile } & \text { Iceland } & \text { New Zealand } & \text { South Africa } \\\hline \begin{array} { l } \text { Abalone Cost } \\\text { Exchange }\end{array} & \text { CLP 50,990,000 } & \text { ISK 5,400,000 } & \text { NZD 104,000 } & \text { ZAR 640,000 } \\\text { Rate: } \$ 1 \text { U.S. } = & 585 \text { CLP } & 61 \text { ISK } & 1.3 \text { NZD } & 7.8 \text { ZAR }\end{array}$
-Refer to the table above. An international seafood supplier is offered 9.45 million yen today for 1000 pounds of abalone frozen in the shell. The abalone can be sourced from various countries at the prices shown above. The current market exchange rates between Australia and the other relevant currencies are also shown. In addition, $1 AUD = 105 yen. What is the value of the best deal the international seafood supplier can make, in Australian dollars?

• A) $5000
• B) $10,000
• C) $7000
• D) $8000

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Definitions:

Annual Profits

The net income a company generates in one fiscal year, derived from its revenue minus expenses, taxes, and costs.

Payoffs

The outcomes or returns from a particular action or decision, often used in the context of game theory and economic models.

Sherman Antitrust Act

Is a landmark federal statute in the United States that prohibits monopolistic business practices and promotes competition.

Cartel Agreements

An arrangement between competing firms to control prices or exclude entry of a new competitor in a market, often to maximize their own profits by limiting supply.