Suppose That a Kilogram Can of Coffee Costs About $6

question 160

Multiple Choice

Suppose that a kilogram can of coffee costs about $6 in Canada.Suppose the exchange rate is 0.7 euro per dollar and that a kilogram can of coffee in Belgium costs about 2.1 euros.What is the real exchange rate?

• A)2.45 cans of Belgian coffee per can of Canadian coffee
• B)2 cans of Belgian coffee per can of Canadian coffee
• C)3/4 cans of Belgian coffee per can of Canadian coffee
• D)3/5 cans of Belgian coffee per can of Canadian coffee

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Definitions:

Robinson-Patman Act

U.S. legislation aimed at preventing anticompetitive practices by producers, specifically price discrimination.

Sherman Antitrust Act

A landmark federal statute passed in the United States in 1890 aimed at promoting economic competitiveness by prohibiting monopolies, cartels, and other forms of anticompetitive behavior.

Decreases Competition

When the number of competitors in the market diminishes, leading to less competition.

Robinson-Patman Act

A federal law in the United States designed to inhibit anticompetitive behaviors among producers by prohibiting price discrimination.