Correct Answer: C. total utility is also equal to its price

Correct Answer: C. seasonal unemployment

Explanation

Seasonal unemployment occurs when people are unemployed at certain times of the year, because they work in industries where they are not needed all year round. Examples of industries where demand, production and employment are seasonalinclude tourism and leisure, farming, construction and retailing.

Correct Answer: D. above the equilibrium and causes surplus

Correct Answer: D. shareholders elect the board of directors

Explanation

The directors could not dictate the decisions in the company as the rights in decision making process also vest in the hands of shareholders. Thus democracy is maintained well.

Explanation

(a)Commodity money is any product that can be used as a means of payment but which is valuable in its own right e.g beads

(b)(i) The problem of double coincidence of wants made trade difficult and time wasting.

(ii) Many goods used in barter trade cannot be divided into smaller units.

(iii) Problem of exchange rate makes it difficult to determine how many of one commodity was to be exchanged to another commodity.

(iv) Under barter, there was little room for borrowing and lending because exchange was based on need.

(v) Goods used were bulky and conveyance was difficult

(vi) Some goods are perishable and so savings was difficult, making storage of wealth difficult and discouraging large scale production.

(c)(i) Money has solved the problem of double coincidence of wants i.e with money you can buy all you want or sell what you have at any time.

(ii) With money, payment for a commodity can be deferred to a future date.

(iii) Money saves time and energy as you no longer have to search for somebody to exchange your commodity with.

(iv) With money, it is possible and easier to store wealth, making room for large scale production.

(v) Money has solved the problem of bulkiness since modern money can be carried around easily.

(vi) Money has created a standard unit of measurement making borrowing and lending easier in the economy.

(viii) Because money has several denominations, it has solved the problem of indivisibility associated with commodity money e.g cattle.

Correct Answer: B. the demand is the same as the supply

Explanation

Market equilibrium is a market state where the supply in the market is equal to the demand in the market. The equilibrium price is the price of a good or service when the supply of it is equal to the demand for it in the market

Explanation

(a) (i) Themarginal revenue formula is calculated by dividing the change in totalrevenue by the change in quantity sold. In the case of the question asked, the output (kg) represents the quantity sold.

At output level 15, \(MR = \frac{30 - 0}{15 - 0} = \frac{30}{15} = $2.00\)

At output level 35, \(MR = \frac{70 - 30}{35 - 15} = \frac{40}{20} = $2.00\)

At output level 60, \(MR = \frac{120 - 70}{60 - 35} = \frac{50}{25} = $2.00\)

At output level 85, \(MR = \frac{170 - 120}{85 - 65} = \frac{50}{25} = $2.00\)

(ii) TheMarginal Cost Formulais calculated by dividing the change in Total Cost by the change in quantity sold (or output as regards this question).

At output level 15, \(MC = \frac{45 - 15}{15 - 0} = \frac{30}{15} = $2.00\)

At output level 35, \(MC = \frac{70 - 45}{35 - 15} = \frac{25}{20} = $1.25\)

At output level 60, \(MC = \frac{90 - 70}{60 - 35} = \frac{20}{25} = $0.80\)

At output level 85, \(MC = \frac{105 - 90}{85 - 65} = \frac{15}{25} = $0.60\)

(b)(i) The firm's break-even point is at output level 35.

(ii) The firm makes the highest profit at output level 85.

(iii) The firm attains equilibrium at output level 15.

(c) The firm is operating in perfectly competitive market.

Correct Answer: B. concept of economies of scale

Explanation

Economies of Scale refer to the cost advantage enjoyed by a firm when it increases its level of output. An increase in the level of output indicates the growth and expansion of a firm. This happens when costs are spread over a larger number of goods.

Correct Answer: A. perfectly price inelastic

Explanation

An economic situation in which the price of a product will have no effect on the supply. In a perfectly inelastic situation regardless of the amount of a product on the market, the price of the product remains the same.

Correct Answer: C. expectation of future price increase