The discount rate is the rate of interest charged when banks lend excess reserves to one another.

Assume a new technology is developed that increases the productivity of capital and creates additional economies of scale. How would this affect the firm's minimum efficient scale of operation. Illustrate this effect graphically

What will be an ideal response?

The lowest marginal tax rate used in the United States is

A. 10 percent. B. 28 percent. C. 33 percent. D. 39.6 percent.