An American Computer Is Priced at $1,200

question 3

Multiple Choice

An American computer is priced at $1,200.If the exchange rate between the U.S.dollar and the Mexican peso is $0.09 = 1 peso,approximately how many pesos would a Mexican buyer pay for the computer?

• A) 13,333 pesos
• B) 108 pesos
• C) 133.50 pesos
• D) 15,075 pesos

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Definitions:

Profit-Maximizing

The tactic or plan of altering production levels and pricing to attain the greatest possible profit.

Incur a Loss

To experience a negative financial result from business operations, investments, or other economic activities.

Economic Profits

The difference between total revenue and total cost, including both explicit and implicit costs, representing the additional amount earned above the next best alternative.

Cable Subscriptions

Fees paid by consumers to access television services provided over cable infrastructure.