Indicate whether each of the following statements is true, false, or uncertain and explain why: a. a proportional tax on all commodities including leisure is equivalent to a lump sum tax.b. efficiency is maximized when all commodities are taxed at the same rate.c. average cost pricing for a natural monopoly allows the enterprise to break even, but the outcome is inefficient

c. producing more automobiles in the United States.

Explanation:

Based on the scenario being described it can be said that the manufacturer could reduce its economic exposure by producing more automobiles in the United States. By doing so they would not be at the mercy of the yen's unexpected currency rate fluctuations since the cars produced in the US are priced in dollars which is for the most part very stable.