Devaluation of the greek drachma

Assignment Help Business Economics

Reference no: EM131161204

Following a devaluation of the Greek drachma, which of the following products sold in Greece is most likely to bear a drachma price increase?

A. IBM mainframe computer, whose only competition comes from other American computer companies

B. Kentucky Fried Chicken dinner, facing competition from local fast food restaurants

C. Fiat automobile, sold to the low end of the market.

Reference no: EM131161204

Questions Cloud

In order to partially address the problem of obesity : In order to partially address the problem of obesity, suppose that the U.S. government is considering a tax on chocolate! Assume that before the tax, the market for chocolate is perfectly competitive and can be represented by: QD = 5000 – 25P, and QS..

Domestic currency appreciates against foreign? currency : Everything else? equal, when domestic currency appreciates against a foreign? currency: A. the nominal exchange rate goes up. B. there is no change in the real exchange rate. C. there is no change in the nominal exchange rate. D. the nominal exchange..

Perfectly competitive constant-cost industry : A perfectly competitive constant-cost industry has a large number of potential entrants. Assume that each firm minimizes its LRAC at an output of 20 units and at an average cost of $10/unit. Market demand is given by QD = 1500 – 50P. How many firms p..

What is the total cost savings can be realized : Company A, a low rated firm, desires a fixed rate, long term loan. Company A currently has access to floating-rate funds at a margin of 1.2% over LIBOR. Its direct borrowing cost is 13% in the fixed rate bond market. What’s the total cost savings can..

Devaluation of the greek drachma : Following a devaluation of the Greek drachma, which of the following products sold in Greece is most likely to bear a drachma price increase? IBM mainframe computer, whose only competition comes from other American computer companies.

Explain the stolper-samuelson theorem : Explain the Stolper-Samuelson Theorem: What are its predictions for who wins and who loses within individual countries? How does it help us understand political coalitions that form within countries

The firm maximizes profit by producing output level : The firm maximizes profit by producing the output level at which____. While economists can explain why there are payments for land, labor and capital, they have not been able to explain why there are profits . The demand curve facing the firm shows u..

What is the corporate average fuel economy program : What is the Corporate Average Fuel Economy (CAFE) program? What are the benefits of having CAFE standards? What are its limitations? Why is the program popular despite the limitations?

The increase in combined output by those two workers : Assume that one day's labor in Argentina can produce either 20 units of cloth or 2 units of wine, while in Chile one day's labor can produce either 24 units of cloth or 12 units of wine. If Argentina transfers 2 units of labor from wine to cloth and ..

User Account

All Pages