Table 141Hypothetical Costs of Producing an Automobile for Toyota Inc

question 27

Multiple Choice

Table 14.1.Hypothetical Costs of Producing an Automobile for Toyota Inc.of Japan

-Refer to Table 14.1.Assume that Toyota Inc.imports steel from U.S.suppliers,whose costs are denominated in dollars,while all other inputs are obtained from Japanese suppliers whose costs are denominated in yen.If the yen's exchange value appreciates from 200 yen = $1 to 100 yen = $1,the yen cost of a Toyota automobile equals:

• A) 2,400,000 yen
• B) 3,000,000 yen
• C) 3,600,000 yen
• D) 4,200,000 yen

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