________ Occur as a Result of Changes in the Value

question 21

Multiple Choice

________ occur as a result of changes in the value of currency, whereas ________ occur as a result of ongoing business activities.

• A) Operating gains or losses; translation gains or losses
• B) Swap losses; translation gains or losses
• C) Translation gains or losses; operating gains or losses
• D) all of the above

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Definitions:

Price Exceeds Marginal Cost

A situation where the price of a good is higher than the marginal cost of producing it, often indicating imperfect competition.

Excess Capacity

The situation where a firm is producing at a lower scale of output than it has been designed to handle, resulting in unused productive capacity.

Source Of Inefficiency

Factors or situations that prevent an economy or system from achieving optimal allocation and utilization of resources, leading to wasted potential.

Product Diversity

The variety of different items that a company produces or that is available in a market.