What is the quantity of deposits the bank will raise

Assignment Help Business Economics

Reference no: EM131103621

Suppose that a monopoly bank faces an upward sloping supply curve of deposits R (D) = 1 + 0.02D, where D is the quantity of deposits and R (D) is the (gross) deposit rate. If one unit of deposits invested in loans yields a (gross) return of 10, what is the quantity of deposits the bank will raise?

Reference no: EM131103621

Questions Cloud

How much effluent will the mill now discharge : The figure below illustrates the marginal cost of pollution control for a small pulp mill. Local authorities have just imposed an effluent charge of $1.00 per gallon of effluent in an effort to reduce water pollution. How much effluent will the mill ..

Which produces output at a constant unit cost : An industry has two firms, each of which produces output at a constant unit cost of $10 per unit. The demand function for the industry is q(p) = 1,000,000/p. Give the best-response function for each firm. What is the Cournot equilibrium price for thi..

What is the duopoly cournot equilibrium : What is the duopoly Cournot equilibrium - that is, the quantities produced by each firm - if the market demand function is q(p) = 1000 - 1000p, and each firm has a cost of $0.28 per unit?

Consider monopolist in market with linear inverse demand : Consider a monopolist in a market with linear inverse demand p(q) = 4 - q/2. The monopolist's cost function is c(q) = 2q. Write down the monopolist's profit function. Compute the profit-maximizing quantity and the corresponding price.

What is the quantity of deposits the bank will raise : Suppose that a monopoly bank faces an upward sloping supply curve of deposits R (D) = 1 + 0.02D, where D is the quantity of deposits and R (D) is the (gross) deposit rate. If one unit of deposits invested in loans yields a (gross) return of 10, what ..

Calculate the firm marginal revenue at the current price : A firm's demand curve is given by P = 500 - 2Q. The firm's current price is $300 and the firm sells 100 units of output per week. Calculate the firm's marginal revenue at the current price and quantity using the expression for marginal revenue that u..

Calloway label to achieve an optimalprice ratio : Calloway Shirt Manufacturers sells knit shirts in two sub-markets. In one sub-market, the shirts carry Calloway's popular label and breast logo and receive asubstantial price premium. Are Calloway's current prices optimal? Management considers the $..

What is the profit-maximizing level of output : You are the economist of a firm with market power. The inverse demand for your product is given by P= 200 -10Q and your marginal cost is 5 + Q. What is the profit-maximizing level of output? What is the profit-maximizing price?

Explain what happened in the economy in long run : Can we use IS-LM model to explain what happened in the economy in long run? Show how the short run equilibrium adjust when price level adjust to ensure that the economy produces at its natural level.

User Account

All Pages