Multiple Choice

If a U.S. firm is purchasing supplies from another country and that country's currency rose relative to the dollar, the
A) cost to the U.S. firm for the same quantity of the supplies has fallen.
B) cost to the U.S. firm for the same quantity of the supplies has risen.
C) firm will produce more at every output price.
D) firm will produce the same at every output price.
E) firm will not produce.
Correct Answer:
Verified
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