Suppose a bank's balance sheet is as follows and banks are required to hold reserves equal to 20 percent of deposits: assets liabilities reserves $2,700 deposits $7,20 a. does the bank hold excess reserves? if so, how much? b. can this bank lend more? if so, how much?

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.