Correct Answer: B. 5.68 tonnes

Explanation

(a)Total output when no fertilizer is applied = 1,000 bags

(b) Total product after the application of the following quantities of fertilizers.

(i) 4 tonnes =1,500 + 400 = 1,900 bags

(ii) 5 tonnes = 1,900 + 250 = 2,150

(iii) 6 tonnes =2,150 + 125 = 2275

(c) The marginal product after the application of the following quantities of fertilizer.

(i) 7 tonnes = 2,330 - 2,275 = 75 bags

(ii) 8 tonnes = 2,380 - 2,350 = 30 bags

(iii) 9 tonnes = 2,330 - 2,380 = - 50 bags

(d) (i) Diminishing marginal returns occur after 4 tonnes

(ii) Total output decreases 8 tonnes

Explanation

(a) A joint venture is a form of business which is jointly owned by two or more independent firms who continue in their original business but pool their resources in another line of business.

(b)(i) A private company can raise capital more easily than a partnership. It can issue debentures or borrow more easily from banks.

(ii) The shareholders enjoy limited liability since they cannot lose more than the capital invested while in a partnership, there is unlimited liability since partners’ assets can be sold to offset business debts.

(iii) The business is a separate legal entity, the owners are different from the business in law while in partnership, the business is not a separate entity.

(iv) The business has a greater perpetual existence while a partnership can easily be dissolved.

(v) The business enjoys internal economies of scale because it operates on a larger scale than a partnership.

(c)(i) Public enterprises receive grants and subsidies from the government

(ii) They can raise funds from the capital market by issuing bonds

(iii) Business assets can be sold to raise funds.

(iv) Rents paid on properties owned by an enterprise can also serve as a source of capital.

(v) Revenue from services rendered to the public can also serve as a source of capital.

(vi) They can also buy goods on credit and make payments later.

(vii) Assets can easily be obtained from hire purchase companies.

(viii) Public enterprises can plough back profits.

(ix) They can raise loans from financial institutions.

Correct Answer: C. provision of medium and long term loans

Correct Answer: C. the ratio of total taxes paid to total income

Explanation

(a) A protective tariff is an import duty imposed on certain commodities to protect domestic industries from foreign competition.

(b) Reasons for

(i) To correct balance of payments problems.

(ii) To protect domestic industries from foreign competition.

(iii) To generate for revenue.

(iv) To discourage dumping.

(v) To prevent the importation of dangerous goods.

(vi) As a political weapon.

(vii) To protect jobs/prevent unemployment.

(c) Reasons against

(i) It limits the level of variety of goods available in the country.

(ii) Other countries may also retaliate.

(iii) It may lead to increase in the price of goods especially if the tariff is too high.

(iv) Fall in the standard of living due to high taxes on imports.

(v) Over protection of domestic industries may lead to inefficiency.

Correct Answer: C. Shortage of indigenous manpower

Correct Answer: A. a production function

Correct Answer: B) Average cost is at the minimum

Explanation

This question is about the relationship between average cost and marginal cost. Average cost is the total cost of producing a good or service, divided by the quantity produced. Marginal cost is the additional cost of producing one more unit of a good or service. The question asks when the average cost is equal to the marginal cost.

The correct answer is Option B: Average cost is at the minimum. When the average cost is at its minimum, it means that the cost of producing each additional unit is decreasing. This also means that the marginal cost is equal to the average cost at that point.

If the average cost is at the maximum (Option A), it means that the cost of producing each additional unit is increasing, so the marginal cost will be higher than the average cost. If the marginal cost is at the minimum (Option C), it means that the cost of producing one more unit is at its lowest point, but this does not necessarily mean that it is equal to the average cost. Finally, if the marginal cost is at the maximum (Option D), it means that the cost of producing one more unit is at its highest point, so it will be higher than the average cost.

Understanding the relationship between average cost and marginal cost is important in economics because it helps businesses determine the optimal level of production and pricing for their goods or services.

Correct Answer: B. selling securities in the open market