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From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $14 million in withdrawals from other banks’ ATM machines. On average, noncustomers earn a wage of $20 per hour and pay ATM fees of $3.25 per transaction. It is estimated that banks would be willing to maintain services for 5 million transactions at $1.25 per transaction, while noncustomers would attempt to conduct 22 million transactions at that price. Estimates suggest that, for every 1 million gap between the desired and available transactions, a typical consumer will have to spend an extra minute traveling to another machine to withdraw cash.
An appreciation of the U.S. dollar would shift the ________. An increase in the costs of resources or inputs of production would shift the ________.
q1. a plant has a capacity of 4100 hydraulic pumps per month. the fixed cost is 504000 per month. the variable cost is
An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price $2/unit of food. draw the budget constraint for the individual with the composite good on the y-axis and food on the x-axis..
Which one of the following would increase per-unit production cost and therefore shift the aggregate supply curve to the left?
The European Central Bank (ECB) has been known for setting strict inflation targets (in other words, the monetary policy has been oriented towards maintain price stability).
Explain how this may be related to the problem of adverse selection. What could banks do to try to reduce this problem?
Describe how each of these activities affects government, households,and businesses. Describe the flow of resources from one entity to another for each activity.
q.consider a competitive market with 9 consumers each of whom will buy at most one unit of the good and 8 vendors each
You have a machine that costs $30,000 now and can be sold for $13,000 in year 4. The machine costs $12,000 each year to operate and the raw materials cost $10,000 each year. The machine produces 500 pieces each year. Using an interest rate of 7%, wha..
Suppose market demand and supply are given by Qd=100-2P and Qs=5+3p. If a price floor of $30 is set, what will be size of the resulting surplus?
In a particular competitive market, the sellers have private marginal cost (PMC) equal to 2.5 at every output level. The demand curve has the equation P = 52.5 − (5Q/2), where Q ≤ 21 is the quantity bought at price P ≤ 52.5. Find the competitive equi..
what combination of monetary and fiscal policy should they choose? Use a graph, and be sure to identify the effects of each policy.
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