ECO 561 Final Exam: ECO 561 - If a firm in a purely competitive industry
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29) A rise <strong>in</strong> the domestic <strong>in</strong>terest rate<br />
leads to capital<br />
A. outflows and exchange rate<br />
appreciation<br />
B. outflows and exchange rate<br />
depreciation<br />
C. <strong>in</strong>flows and exchange rate depreciation<br />
D. <strong>in</strong>flows and exchange rate appreciation<br />
To download the complete answer check<br />
eco <strong>561</strong> f<strong>in</strong>al exam answers for free<br />
30) A <strong>firm</strong> under monopolistic<br />
competition will earn<br />
A. a positive economic profit as it<br />
has some monopoly power<br />
B. zero economic profit as it sets P =<br />
MC<br />
C. zero economic profit as its P =<br />
ATC<br />
D. a positive economic profit as it<br />
sets MC = MR<br />
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