If the Exchange Rate for US Dollars Relative to Australian

question 35

True/False

If the exchange rate for US dollars relative to Australian dollars goes from US$1 = A$2.10 to US$1 = A$2.20,the Australian dollar has strengthened.

---

Definitions:

Short Run

a period in economics during which at least one input is fixed and cannot be changed, limiting a firm's ability to adjust production.

Fixed Costs

Expenses that do not change in proportion to the activities of a business within a certain range of operation, such as rent, salaries, and insurance.

Monopolistically Competitive

A market structure where many firms sell products that are similar but slightly differentiated, allowing them some control over pricing.

Maximizing Profits

The process of adjusting production and sales strategies to generate the highest possible profit from business activities.