Unit: Economics
24 Questions
P = 45 – 4Q
TC = 44 + 15Q
Where;
P represents price
Q represents quantity
TC represents total cost
Required:
(i) Determine the sufficient condition for profit maximisation of the firm.
(ii) Determine the firm’s price for profit maximisation.
Autonomous consumption = 8000
Marginal propensity to save (MPS) = 0.45
Required:
(i) Derive the savings function.
(ii) If the level of government expenditure increases by 250%, determine the change in equilibrium level of
national income.
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