About issues related to exchange rates

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Reference no: EM131385458

FORUM: Please respond to this thread with about 3 paragraohs,

Here, in this forum, I expect you to talk about issues related to exchange rates - their impact on national economies when they change, their different equilibrium concepts (PPP and IP), how governments manage them (fixed or flexible or in-between).

Reference no: EM131385458

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Two firms have identical cost curves : Two firms have identical cost curves, but firm A is a price taker while firm B is a price searcher. Is it possible that the two firms could find themselves at the same wealth maximizing output? (Assume that firm B is NOT able to engage in any form of..

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Exchange rate between the peso and dollar : If the exchange rate between the Mexican Peso and the U.S.$ is 3 Pesos=1$. If this rate changed to 2 Pesos=1$. Are the Mexican exports cheaper or more expensive due to this change? What can the Mexican policy makers do to return to the initial exchan..

About issues related to exchange rates : Here, in this forum, I expect you to talk about issues related to exchange rates - their impact on national economies when they change, their different equilibrium concepts (PPP and IP), how governments manage them (fixed or flexible or in-between).

Output where the demand for their product is inelastic : “A producer who is attempting to maximize wealth (or profit) will never knowingly set their output where the demand for their product is ‘inelastic.’” Refute or prove this statement. Does your answer depend on whether the producer is a price taker or..

The wealth maximizing output for a price searcher : In class is was claimed that at the wealth maximizing output for a price searcher who is making zero (economic) profits, the Average Total Cost Curve must be tangent to the Demand Curve rather than merely be equal to but bisecting the Demand (either ..

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