Under a Floating Exchange-Rate System,if the U

question 67

Multiple Choice

Under a floating exchange-rate system,if the U.S.dollar depreciates against the Swiss franc:

• A) American exports to Switzerland will be cheaper in francs
• B) American exports to Switzerland will be more expensive in francs
• C) American imports from Switzerland will be cheaper in dollars
• D) None of the above

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Definitions:

Competition

The economic rivalry among businesses to attract customers, increase sales, and achieve a higher market share.

Natural Monopoly

A type of monopoly that occurs when a single firm can supply the entire market at a lower cost than any potential competitors, often due to high fixed costs.

Fair Return

A reasonable profit that companies aim for, which covers costs and provides a sustainable margin without being excessive.

Operating Efficiency

The capability of an organization to deliver products or services to its customers in the most cost-effective manner without sacrificing quality.