Elucidate what impact does the dollar appreciation

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Q. If there are no fixed costs and variable costs are constant at $1.00 per unit over the relevant range of output, Illustrate what will the average total cost be after 1 unit is produced?

Q. Suppose ABC Inc. a U.S. auto manufacturer, obtains all of its auto components in the United States and that its costs are denominated in dollars. Assume the dollar's exchange value appreciates by 50% against the Mexican peso. Elucidate what impact does the dollar appreciation have on the firm's international competitiveness?

 

Reference no: EM1346300

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