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If the Forward (Direct Quote)exchange Rate Is Lower Than the Spot

question 108

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If the forward (direct quote) exchange rate is lower than the spot rate, the forward currency is said to be trading at a:


Definitions:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total amount of output produced, indicating the cost per unit of output.

Marginal Cost

The production cost for one more unit of a product.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies.

Average Total Cost

The per unit cost of production, computed by dividing the total cost of production by the total quantity of output.

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