Returning to the original problem formulation shown in Fig. of Exercise 3, Jean-Pierre feels…
Returning to the original problem formulation shown in Fig. of Exercise 3, Jean-Pierre feels that, with existing uncertainties in international currencies, there is some chance that the New France dollar will be revalued upward relative to world markets. If this happened, the cost of imported materials would go down by the same percent as the devaluation, and the market price of the country’s exports would go up by the same percent as the revaluation. Assuming that the country can always sell all it wishes to export how much of a revaluation could occur before the optimal solution in Fig. would change?
