-Based on the Diagram Above,the Market Equilibrium Value of the Krone

question 142

Multiple Choice

-Based on the diagram above,the market equilibrium value of the krone is _________ kroner per dollar or _________ dollar per krone.

• A) 0.15;6.67
• B) 6.67;0.15
• C) 0.11;9.09
• D) 5.55;0.18
• E) 4000,0.00025

---

Definitions:

Monopolistically Competitive

Describes a market structure where many companies sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Differentiated

Products or services that are distinct from others based on quality, features, or branding to create a perceived difference.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, free entry and exit, and perfect information, leading to an efficient allocation of resources.

Zero Economic Profits

A situation where a firm covers all its costs, including the opportunity costs, resulting in no additional profit above the normal rate of return.