A commercial bank's reserves are:
A. liabilities to both the commercial bank and the Federal Reserve Bank holding them.
B. liabilities to the commercial bank and assets to the Federal Reserve Bank holding them.
C. assets to both the commercial bank and the Federal Reserve Bank holding them.
D. assets to the commercial bank and liabilities to the Federal Reserve Bank holding them.
D. assets to the commercial bank and liabilities to the Federal Reserve Bank holding them.
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How do product development and marketing affect a firm in monopolistic competition?
What will be an ideal response?
A firm is operating with an optimal combination of inputs. Suddenly the price of one input rises. The firm should
A. buy less of that input and more of the other input. B. change its input mix so that the marginal physical product of the input whose price has risen falls and the marginal physical product of the other input rises. C. buy less of whichever input now has the highest money price and more of the other input. D. reduce its output.
If the firm in Figure 17-4 above maintains its set price of P0, rather than dropping price to P1, this reduces its profit by
A) K - G. B) K + G. C) G - K. D) G + H. E) G.
A profit center
a. Is very complicated to run and manage b. Doesn't require a lot of attention from executives at the firm's headquarters c. Requires the parent company's highest degree of attention d. Does not properly incentivize the managers when it comes to their own division's performance