Marginal rate of substitution

Assignment Help Business Economics

Reference no: EM136269

Q1. Assume that serendipity bank has overload reserves of $8000 and checkable deposits of $150,000. If preserve ratio of 20%, what is the size of the banks actual reserves?

Q2. What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitute's one product for another? Use examples to illustrate.

Q3. Suppose a monopolist can purchase Labor at a price w = 36 and can purchase Capital at a price r = 25. The monopolist's production function is given by Q = L1/2K1/2. The demand facing the monopolist is given by P = 180 - 3Q.

Reference no: EM136269

Questions Cloud

Drawback of using a nominal anchor : What, how and for who apply to the following the economic decision. Should the company makes its own spare parts or buy them from an outside vendor.

What disorder does the man have : What disorder does this man have? Gastric secretions normally include about 10mmole/L potassium. How do you account for the low serum potassium in this patient.

Characteristics of proprietorships : Characteristics of Proprietorships what percentage of sole proprietorships is engaged in retail trade? Why might more sole proprietorships be engaged in services rather than manufacturing?

Did all bacteria present in each saliva sample grow : The number of bacteria in saliva samples was determined by collecting the saliva, making serial dilutions, and inoculating nutrient agar through pour plate method. The plates were incubated aerobically for 48 hours at 37C.

Marginal rate of substitution : What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitute's one product for another. Use examples to illustrate.

What amino acid is coded for normal dna sequence ctc : Sickle cell anemia is a disease of red blood cells in which the genetic mutation in DNA leads to a mutation in hemoglobin. A single base vary alters the DNA sequence CTC to CAC which codes for the wrong amino acid. What amino acid is coded for throug..

Monopolist faces the demand curve : If income rises from 1000 to 1800 and consumption rises from 1100 to 1700 the marginal propensity to save.

What would happen to heart rate and peripheral resistance : What would happen to heart rate and peripheral resistance? Would it be probable to build a working circuit without the inhibitory interneuron? If so, how would you do it? If not, why can't you do it.

Tootsie roll company to analyze their production process : One day you realize you're tired of smelling like refried beans all the time and begin thinking about starting your own business. After doing some investigation you decide to spend 15 hours per week running a photocopy service in your dorm.

User Account

All Pages