Generally Speaking, a Firm Is Subject to High Degrees of Operating

question 38

Multiple Choice

Generally speaking, a firm is subject to high degrees of operating exposure when

• A)either its cost or its price is sensitive to exchange rate changes.
• B)both the cost and the price are sensitive to exchange rate changes.
• C)both the cost and the price are insensitive to exchange rate changes.
• D)none of the above

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Definitions:

Evaporite Minerals

Minerals formed by the evaporation of water, leaving behind a concentration of salts and other minerals; common examples include gypsum and halite.

Rock Salt

A sedimentary rock composed primarily of sodium chloride, forming from the evaporation of seawater and used in various applications including road de-icing and as a seasoning.

Dried Up Lake Bed

The base of a former lake that has lost its water content and become dry, often leaving behind salt flats, minerals, or arid land.

Clastic Sediments

Sediments made up of fragments, or clasts, of pre-existing minerals and rock that have been transported and deposited by wind, water, or ice.