Selling british pounds for american dollars
Assume that the bid-ask spread for the USD/GBP exchange rate in percentage terms is equal to 0.06%. If the dealer's ask quote is 1.50 USD/GBP, then at what price are you going to sell British pounds for American dollars?
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Marketing its new product at a price of $25.00 per unit; however, the average variable cost of the product is $30.00. Should this firm shut down? Why or why not?
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