Internet Exercises


1			Go to http://www.bankofcanada.ca/en/ Perfect Competition and Foreign Exchange Markets. 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 for a 3 percent commission. Go to the McConnell-Brue-Barbiero Web site (Chapter 7) to get the most recent exchange rate. What was your total revenue in Canadian dollars yesterday? (Be sure to include your commission.) Why would your profit for the day be considerably less than this total revenue?




2			Go to http://www.agric.gov.ab.ca/app21/rtw/index.jsp Go to http://www.wce.ca/ Perfect Competition and Commodity Markets. In a purely competitive market, individual firms produce homogeneous products and exert no significant control over product price. Go to the McConnell-Brue-Barbiero Web site (Chapter 7) to access the Alberta government site, which provides a brief overview of how a commodity exchange functions and has links to the main commodity exchanges in North America. Also, visit the Winnipeg Commodity Exchange and select "Daily Market Summary." Which of the main crops has had the largest price movement and why?