The profit maximizing output level for a monopolist is where the MARGINAL REVENUE EQUALS THE MARGINAL COST.
In order for a monopolist to determine the profit maximizing level of output, he has to gather information about market demand, product price and cost of production for different level of output. The data gathered can then be used to determine the various types of cost that are expended by the company and this can be represented on a graph. The point at which the marginal revenue equals the marginal cost is the point of profit maximum level of output for the company.
Answer:
Lowering the banks' reserve requirement (option C) is an example of the Fed's <u>expansionary monetary policy</u> tool.
Explanation:
<h3>General Concepts:</h3>
Monetary policy.
Expansionary monetary policy.
Contractionary monetary policy.
Open market operations.
Open market sale.
<h2>What is a Monetary Policy?</h2>
The Federal Reserve (or the Fed) implements its monetary policy by increasing or lowering the nation's money supply to achieve macroeconomic goals. The two types of monetary policies are <em>expansionary</em> and <em>contractionary</em> <em>monetary policies</em>.
<h3>Expansionary Monetary Policy</h3>
The Fed implements an expansionary monetary policy during periods of <em>recession</em> to increase the nation's money supply and stimulate aggregate demand for goods and services. The Fed has the following tools to implement its expansionary monetary policy:
- Purchasing of government securities through the Federal Open Market Committee's (FOMC) <u>open market operations</u> (OMO). The OMO increases the banks' reserve account, which allows the latter to loan its <em>excess reserves</em>.
- Lowering the reserve requirement means that the depository institutions will only have to maintain a lesser fraction of their <em>checkable deposits</em>. This allows banks to loan their excess reserves, thereby stimulating investment and consumer spending.
- Lowering the discount rate below the <em>federal funds rate</em> enables<em> reserve deficient </em>depository institutions to acquire a <u>discount loan</u> from The Fed at a lower <em>discount rate</em>.
<h3>Contractionary Monetary Policy</h3>
The Fed implements a contractionary monetary policy during periods of <em>inflation</em>, which decreases the nation's money supply and slows down economic growth. The following are the Fed's tools for implementing its contractionary monetary policy:
- The FOMC's open market sale of U.S. Treasury securities decreases the depository institutions' reserve account, and reduces the monetary base. Consequently, the banks will have lesser reserves to loan to borrowers.
- Increasing the required reserve ratio implies that the banks must maintain a larger portion of its required reserves. This action increases the cost of loaning funds from other banks through the <em>federal funds market</em>, which discourages consumer and investment spending.
- Increasing the discount rate above the federal funds rate discourages banks to acquire discount loans from the Fed. The banks' repayment of previous discount loans to the Fed also decreases the money supply.
<h2>Final Answer:</h2>
We can infer that lowering the banks' reserve requirement (option C) is an example of the Fed's <u>expansionary monetary policy</u> tool.
<h3>______________________</h3>
Learn more about monetary policy: brainly.com/question/13926715
Learn more about expansionary and contractionary monetary policies:
brainly.com/question/9046840
Answer:
CD: 41,500
Bonds: 49,500
Explanation:
Base on the information we are given, we can create an equation system:
The total investment in bonds and certificates of deposit totals 91,000
and the amount investment on bonds are 8,000 higher than Certificates of deposit
<u>We replace the bonds of the second equation on the first equation:</u>
CD + (CD + 8,000) = 91,000
<u>And solve for certificates of deposits</u>
2CD = 91,000 - 8,000
CD = 83,000/2 = 41,500
<u>Now, we replace the CD on the second equation</u>
Bonds = CD + 8,000
Bonds = 41,500 + 8,000 = 49,500
Answer:
1.49
Explanation:
Calculation to determine Transic's current ratio for 2017
Using this formula
2017 Current ratio=2017 Total Current Assets /2017 Current Liabilities
Let plug in the formula
2017 Current ratio=$107,000/$ 72,000
2017 Current ratio=1.486
2017 Current ratio=1.49 (Approximately)
Therefore Transic's current ratio for 2017 is 1.49
<span>GDP per capita is not a good measure of the standard of living because there is no attention paid to the price level in GDP per capita. For example, your GDP could be really high such as in places like Japan(largest economy in the world at the moment) so their GDP per capita is high. However, their cost of living is also very high(due to lack of land area) leading to a low standard of living.</span>