Graphically Explain the General Set-Up of a Letter of Credit

question 71

Essay

Graphically explain the general set-up of a letter of credit transaction.In this context, explain why letters of credit are important

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Definitions:

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Marginal Utility

The additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Total Utility

The total satisfaction received by consuming a certain amount of goods or services.

Marginal Utility

The additional satisfaction or utility gained from consuming one more unit of a good or service.