# As stock markets crashed in late 2008, and uncertainty increased, consumers moved their money to the safest currencies in the world

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 ▲ 0 ▼ ♥ 0 Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your costs decrease by \$6. The first unit costs you \$64 to produce. If you receive a request for proposal (RFP) on a project for 4 units, what is your break-even price? Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your costs decrease by \$6. The first unit costs you \$64 to produce. Suppose that after you receiving a request for proposal (RFP) on a project for 4 units, you can win another project for two more units. What is your break-even price for those 2 extra units (just for those extra 2 units, which are units 5 and 6)? The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: \$30, \$29, \$20, \$16, and \$12. Five buyers are willing to buy one widget at the following prices: \$10, \$12, \$20, \$24 and \$29. What is the equilibrium price in a competitive market? The “A” index is a proxy for the world price of cotton. From January to October of 2010, the price reflected by the “A” index increased about 80%. Which of the following might explain the increase in the price? (increase/decrease in demand) (increase/decrease in supply) In August 2008, Mexican pesos were trading at \$0.10 on the foreign exchange market. By November, they were down to \$0.07, a decline of 30%. As a result, investors bought (dollars/pesos) and sold (dollars/pesos). This resulted in an (appreciation/depreciation) of the US dollar and (appreciation/depreciation) of the Peso.  You should be able to draw and explain the changes in exchange rates supply and demand curves. As stock markets crashed in late 2008, and uncertainty increased, consumers moved their money to the safest currencies in the world. Based upon the historical exchange rate changes (be sure to look these up on line for the 2008-09 period), which currency was viewed as safer? (the US dollar or British pound)