Which of the following methods can be used to sustain a cartel?

If banks are currently holding zero excess reserves and the Fed raises the required reserve ratio, which of the following will happen?

A) Banks will have a reserve deficiency. B) Banks will have positive excess reserves. C) Banks will begin to extend more loans. D) Banks will begin to extend more credit. E) b and d

The rate of production that maximizes the positive difference between total revenues and total costs is the

A) profit-maximizing rate of production. B) rate of production at which marginal revenue equals marginal product. C) rate of production at which marginal revenue equals average revenue. D) rate of production at which average revenue equals average total cost.