A _____ Means the Value of the Currency Is Fixed

question 6

Multiple Choice

A _____ means the value of the currency is fixed relative to a reference currency.

• A)pegged exchange rate
• B)dynamic exchange rate
• C)floating exchange rate
• D)fixed exchange rate

Comprehend the concept of economies of scale.

Understand historical shifts in production methods and their impact on business size and structure.

Describe the interdependency between small and large businesses.

Recognize the significant representation of small businesses in the service sector.

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Definitions:

Market Price

The present cost at which a service or asset is available for purchase or sale in a specific market.

Decreasing-Cost Industry

An industry where production costs decrease as the industry grows, often due to economies of scale.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments such that supply equals demand, and no economic profits are earned.

Increased Demand

A situation where the desire or need for a product or service grows, often leading to higher sales or consumption.