Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 16

YOU ARE A PURE COMPETITOR-WHAT WAS YOUR REVENUE YESTERDAY Suppose that you operate a purely competitive firm that buys and sells foreign currencies. Also suppose that yesterday your business activity consisted of buying 100,000 Swiss francs at the market exchange rate and selling them to U.S. travelers to Switzerland for a 3 percent commission. Go to the Federal Reserve Web site at federalreserve.gov and select, in order, Economic Research and Data, Statistics, and Foreign Exchange Rates. What was your total revenue in dollars yesterday (be sure to include your commission) Why would your profit for the day be considerably less than this total revenue