Figure 14.2 The US Market for Imported Toyotas -In Figure 14.2,D represents the US demand curve for Toyotas and MC₀ represents the marginal cost of producing Toyotas.A shift in the marginal cost curve from MC₀ to MC₂ represents A) an appreciation of the dollar relative to the yen B) a depreciation of the yen relative to the dollar C) a depreciation of the dollar relative to the yen D) neither an appreciation nor a depreciation of the dollar relative to the yen

Question

Quizplus · Accepted Answer

A shift in the marginal cost curve from MC₀ to MC₂ indicates an increase in the cost of producing Toyotas, which could be due to a depreciation of the dollar relative to the yen, making imports more expensive.

Figure 142 the US Market for Imported Toyotas