Correct Answer: B. communication links are weak

Correct Answer: B. both inductive and normative methods

Explanation

Given the cost equation of a firm as C = 20 + 2q,

Where C = Total cost; q = quantity produced.

The total cost of producing

(a)(i) 12 units

C = 20 + 2 (12) = 20 + (2 x 12) = 20 + 24 = #44

(ii) 36 units

C = 20 + 2 (36), = 20 + (2 x (36) . = 20 + 72 =#92 )

(b)(i) Average cost at 48 units AC= \(\frac{T} {Q}\)

TC = 20 + 2 (48)

TC = 20 + 2 (2 x 48) = 20 + 96

= \(\frac{116} {48}\) = N2.42 48

(iii) Average cost at 58 units

TC = 20 + 2(58),

TC = 20 + ( 2 x 58)

TC = 20 + 116 = N136

AC = \(\frac{136} {58}\) = 2.34

(c)(i) Marginal cost when 23 units are produced

MC= \(\frac{TC_2 - TC_1}{q_2 - q_1}\)

at 23 units, TC\(_2\) = N66

TC = N44

q\(_2\) = 23 units

q\(_1\) - 12 units

MC = \(\frac{66-44}{23-12}\) = \(\frac{22}{11}\) = 23

(d)(i) Profit = TR - TC

TR = N5 x 23 units =N115,

TC=20 +2q=20 +2 (23)=20 + 46 = N66

P =N115 -N66 = N49

(ii) TR = N 5 x 48 units =N240,

TC = 20 + 2 (48)

20 + 96 =N116

P =N240 - N116 =N124

Explanation

(a)Fixed Cost of production is the sum of the cost of all the fixed inputs used in a production process. Fixed Costs do not change with the changing output in the short run. This means that no matter the level of production, they remain fixed. Example of this is cost of machinery, land etc. FC = TC — VC.

Variable Cost, on the other hand, is the sum of the cost of all the variable inputs of production. It includes the cost of labour, raw materials and any other item whose cost changes as output changes in the short-run. Therefore, the more goods and services produced, the higher they tend to be and vice versa. VC = TC — FC.

(b) The difference between marginal Cost and Marginal Revenue; is that marginal cost is the change in total cost as a result of a unit change in output. Marginal cost does not depend on fixed cost but on the variable cost. MC = change in \(\frac{TC} {Dq}\)

On the other hand, Marginal revenue is the change in total revenue as a result of a change in quantity sold. MR = \(\frac{DTR} {Q}\)

(c) Total Cost of production is the sum of all the fixed and the variable cost incurred during production process. This varies with the level of output. TC = FC + VC. Total revenue is the total amount of money earned by selling a given level of output. Total revenue may increase, remain constant or decrease with changes in price. TR = p x q

(d) Average Cost is the total cost (TC) divided by the Total Output (Q). It is the unit cost, i.e., \(\frac{TC} {Q}\) = AC.

Average Revenue is the unit price. It is the Total Revenue (TR) divided by the output (Q).

\(\frac{ TR} {Q}\)- AR.

Correct Answer: B. diminish the percentage contribution of the agricultural sector to GNP

Correct Answer: C. at a lower price, less is supplied

Correct Answer: A. providing research and massive employment of labour

Explanation

The benefit of large scale farming over peasant farming is the reduced cost of food. Consolidation and vertical coordination have not only reduced costs, but also expanded diversity of food products and solved information problems.

Correct Answer: C. \(\frac{\text{% change in quantity demanded of commodity X}}{\text{% change in price of commodity Y}}\)

Correct Answer: B. socialist economy

Explanation

(a) Labour force refers to persons available to supply the labour for the production of economic goods and services. Labour force is the working population and it comprises all persons who have jobs and who are seeking for jobs in the labour market. They are between the ages of 18 years and 60 years.

(b) Factors affecting the size of labour force are:

(i) Size of population of the country.

(ii) Number of working hours and working days.

(iii) Statutory entry and retirement ages.

(iv) Proportion of the labour force willing and able to work

(v) Official school-leaving age.

(vi) Proportion of women in the labour force.