This topic contains a solution. Click here to go to the answer

Author Question: Banks hold 100 of their checking deposits as vault cash to ensure that bank runs do not occur. ... (Read 56 times)

Capo

  • Hero Member
  • *****
  • Posts: 545
Banks hold 100 of their checking deposits as vault cash to ensure that bank runs do not occur.
 
  Indicate whether the statement is true or false

Question 2

Assume two firms have the same total costs of production. Firm A's average variable cost if 5 per unit and firm B's average variable cost is 7 . Both firms have an average total cost of 8 .
 
  If the current market price is 6 and remains unchanged what action will both firms take in the short run and the long run?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Swizqar

  • Sr. Member
  • ****
  • Posts: 357
Answer to Question 1

FALSE

Answer to Question 2

Firm B will shut down in the short run because it is suffering operating losses. If the product price doesn't reach 8 or better it will exit the industry. Firm A will continue to produce in the short run because it is making an operating profit. However, if market price does not rise to 8 or better it too will exit in the long run.




Capo

  • Member
  • Posts: 545
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


frankwu0507

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

For a complete list of videos, visit our video library