Is that the full question?
Because banks hold reserves in amounts that are less than the amounts of their deposit liabilities, and because the deposit liabilities are considered money in their own right, fractional-reserve banking permits the money supply to grow beyond the amount of the underlying base money.
Answer:
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Answer:
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Explanation:
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Answer:
Q = 15
profit at q=15 $800
Explanation:
To maximize their profit it will produce until the marginal cost equalize the marignal revenue.
As the price is 120 each additional unitgenerates 120 dollars of revenue.
Now, we solve for the marginal cost

Q = 15
<em><u>Total cost </u></em>
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<em><u>Profit</u></em>
$120 x 15 units - $1,000 cost = 800