Suppose that a monopoly bank faces an upward sloping supply


Suppose that a monopoly bank faces an upward sloping supply curve of deposits R (D) = 1 + 0.02D, where D is the quantity of deposits and R (D) is the (gross) deposit rate. If one unit of deposits invested in loans yields a (gross) return of 10, what is the quantity of deposits the bank will raise? 

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Business Economics: Suppose that a monopoly bank faces an upward sloping supply
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