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Figure 142 the US Market for Imported Toyotas

question 99

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Figure 14.2 The US Market for Imported Toyotas Figure 14.2 The US Market for Imported Toyotas   -In Figure 14.2,D represents the US demand curve for Toyotas and MC<sub>0</sub> represents the marginal cost of producing Toyotas.Assume that Toyota behaves like a monopolist in the US market.A shift in the marginal cost curve from MC<sub>0</sub> to MC<sub>2</sub> leads to A)  a complete pass-through ot the depreciation of the dollar B)  a complete pass-through of the appreciation of the dollar C)  a partial pass-through of the depreciation of the dollar D)  a partial pass-through of the appreciation of the dollar
-In Figure 14.2,D represents the US demand curve for Toyotas and MC0 represents the marginal cost of producing Toyotas.Assume that Toyota behaves like a monopolist in the US market.A shift in the marginal cost curve from MC0 to MC2 leads to


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