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Suppose the Exchange Rate Is US$1 = ¥100

question 17

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Suppose the exchange rate is US$1 = ¥100. This means that


Definitions:

Normal Profit

The minimum amount of revenue that a company needs to cover both explicit and implicit costs.

Entrepreneurs

Individuals who, rather than working as employees, run a business and assume all the risks and rewards of a given business venture, idea, or good or service offered for sale.

Allocative Efficiency

A state of resource distribution where resources are allocated in a way that maximizes the total benefit received by all members of society.

Purely Competitive Industry

An industry characterized by many small firms producing identical products, where no single firm can influence the market price.

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