If a Firm Can Produce a Product at a Lower

question 40

True/False

If a firm can produce a product at a lower average cost than its competitors, it stands a better chance of earning economic profit.

---

Definitions:

Net Capital Outflow

The difference between the domestic country's total investment abroad and foreign investments within the country, over a specific period of time.

Net Exports

The value of a country's total exports minus its total imports, representing the net value of goods and services being sold abroad.

Net Capital Outflow

The difference between a country's purchase of foreign assets and the sale of domestic assets to foreigners in a given time period.

Real Exchange Rate

The nominal exchange rate adjusted for differences in price levels between two countries, showing how many units of a foreign product can be purchased with one unit of a domestic product.