Exhibit 21-11 ​

question 73

Multiple Choice

Exhibit 21-11
​

-Refer to Exhibit 21-11. Average total cost of the sixth unit of output is

• A)$50.
• B)$100.
• C)$300.
• D)$90.83.

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Definitions:

Flexible Exchange Rate

A rate of exchange that is determined by the international demand for and supply of a nation’s money and that is consequently free to rise or fall because it is not subject to currency interventions. Also referred to as a “floating exchange rate.”

Fixed Exchange Rate

A currency system where the value of a currency is pegged against another currency, a basket of currencies, or another measure of value.

Trade Deficits

A situation where a country's imports exceed its exports, indicating that it is buying more goods and services than it is selling abroad.

Current Account

Part of a nation's balance of payments encompassing the trade balance, net primary income, and net secondary income components.