Q1 in recent years the value of the dollar had declined

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Q1. In recent years the value of the dollar had declined relative to the euro. What does that mean for European businesses exporting to the US?

Q2. Suppose that with 400 patients per year, the SAFC, SATC and SMC of operating a physician clinic are $10, $35, and $30 per patient, respectively. Furthermore, suppose the physician decides to increase the annual patient load by one more patient. Using short-run cost theory, explain the impact of this additional patient on the SAVC and SATC. Do they increase or decrease? Why?

Reference no: EM13353135

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