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Explain how deposit expansion takes place in a banking system consisting of two banks.Explain how it is possible for a firm to experience simultaneously an increasing average product but a diminishing marginal product. The table sets out Sue’s Surfboards’ total product schedule. Labor Output (workers (surfboards per week) per week) 1 …………………….. 30 2 …………………….. 70 3 …………………….. 120 4 …………………….. 160 5 …………………….. 190 6 …………………….. 210 7 …………………….. 220
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