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Cash Withdrawals and Changes in the Money Supply. If a customer withdrew $2,000 in cash from a bank and the reserve ratio was 0.2, by how much could the supply of money eventually be reduced?
a. Calculate the average product of labor, APL and the marginal product of labor, MPL. b. If workers at the firm are paid a competitive wage of $100 and the product is sold for $200 each, what is optimal level of labor usage and what is the maximu..
A market contains a group of identical price-taking firms. Each firm has a marginal cost curve MC(Q) = 2Q, where Q is the annual output of each firm. A study reveals that each firm will produce if the price exceeds $20 per unit and will shut down.
The flexibility of the supply curve of rented apartments before the law was passed is 0.15 Before the law was passed, there was a rise in the demand for rented apartments, and this rise in demand caused a 30 percent rise
On the planet Omicron Persei 8, government spending is $1000, net taxes are $1200, and planned investment is $1400. Consumers spend according to the equation C = 100 + 0.8Yd, where Yd represents disposable income.
Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function P = 1760 - 12Q It finance department has estimated its total cost function as TC = 24,00..
Passengers using New York's MetroCard system must swipe the card at a rate between 10 and 40 inches per second, or else the card must be re-swiped through the card reader. Research shows that actual swipe rates by subway riders.
Inflation affects creditors and debtors. Suppose the Canadian debtors borrowed $100 from the Canadian creditors on December 31, 1992 and promised to pay back $105 on December 31, 1993. This is equivalent to paying back a nominal interest rate of 5..
Suppose that the reserve requirement is 3 percent on the first $30 million of checkable deposits and 10 percent on checkable deposits in excess of $30 million. (Amounts on the balance sheet are in millions of dollars.) Assets Reserves $15.90 Loans..
Why is there a tendency to focus on large firms rather than small or medium-sized firms? Have the corporate ethics scandal of the past decade affected small- and medium-sized firm? If so, in what ways have these firms been affected?
ASM International, an Australian steel company, claims that a savings of 40% of the cost of stainless steel threaded bar can be achieved by replacing machine threads with precision weld depositions. A U.S. manufacturer of rock bolts and grout-in f..
John runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth)
Thereare large numbers of sports industries which are producingfootballs and they are competing with each other with respect toprice as well as quality. Suppose that the marginal cost ofproducing footballs is $20 per football
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