<span>This type of marketing is known as imperfect competition as many companies are selling similar products, but the products aren’t similar enough to compete with each other in the market. One way that a company in this type of market can get the most for their money is by producing goods that have a marginal revenue that equals the marginal cost. The company also can continue to develop new products in order to keep us with the demands of its customers. In order to increase the demand for their product, the company may improve its quality and design in order to make it more useful for its customers.</span>
The M1 money multiplier decreases and the money supply decreases when the required reserve ratio on checkable deposits rises, all else being equal.
<h3>What is the reserve ratio?</h3>
The percentage of deposits that commercial banks must retain in cash under the guidance of the central bank is known as the cash reserve ratio.
<h3>How is reserve ratio determined?</h3>
- The country's central bank, in the instance of the United States, the Federal Reserve, determines the reserve ratio requirement.
- The calculation for a bank can be obtained by dividing the bank deposits by the cash reserve held with the central bank, and it is expressed as a percentage.
<h3>What is an example of the reserve ratio?</h3>
The required reserve ratio is directly correlated to how much a bank expands the money supply. For instance, if a bank has deposits totaling $1,000,000 and a reserve ratio of 10%, it can lend out $900,000.
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<u>brainly.com/question/13758092</u>
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Answer:
Estimated manufacturing overhead rate= $0.2 per direct labor dollar
Explanation:
Giving the following information:
Direct labor, $30,000
Factory overhead applied $6,000.
<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
6,000= Estimated manufacturing overhead rate*30,000
6,000 / 30,000 = Estimated manufacturing overhead rate
Estimated manufacturing overhead rate= $0.2 per direct labor dollar
Answer:
C
Explanation:
In this question, we are looking at what would be the later effect of the Congress taking steps to make sure that there is an increase in the amount of returns on savings for example, say the amount of interest rate on saved money is increased.
What will happen in this case is that the equilibrium interest rate would be lower while the equilibrium quantity of loanable funds will be higher. What he meant by the equilibrium interest rate is that it is the interest rate at which the amount of money demanded is equal to the amount of money supplied.
Due to the legislation by congress, it is expected that more money would be supplied in terms of bank deposits as people would want to make a higher profit off the legislation. The effect of this is that the equilibrium interest rate will be lower as its balance would have been upset my the availability of more deposits and less demand.
We also say that the equilibrium level of loanable funds will be higher. This is because there would be more money present in the vaults of the bank as savings have been encouraged and people are expected to fill the bank with more money. This thus means the bank has more money to throw around via loans as there is an increase in the amount of savings. This surely would drive up the equilibrium quantity of loanable funds
Answer:
11.66 million
Explanation:
Annual Amortization Expense:
= Cost of acquiring at the beginning of the year ÷ 9-year life
= $42 million ÷ 9
= $4.67 million per year
Year 2021 Amortization Expense 4 Years:
= Annual Amortization Expense × 4
= $4.67 per year × 4 years
= $18.68 million
Unamortized Cost:
= Cost of acquiring at the beginning of the year - Amortization Expense 4 Years
= $42 million - $18.68 million
= $23.32 million
Patent amortization expense in 2021:
= Unamortized Cost ÷ 2
= $23.32 ÷ 2
= 11.66 million