The marginal cost function of a certain firm is given by:
MC = 6Q + 4
Where; MC is the marginal cost function Q is the level of output
Required: (1) The total cost function. (ii) The average fixed cost function. (iii) The average variable cost function. (iv) The level of output that would minimise the average variable cost. (v) The level of output that would minimise the average total cost.
The following data relate to the nominal and real gross national product (GNP) levels for a hypothetical economy for the years 2011 and 2019:
Year
2011
2019
Nominal GNP "Sh.billion"
1,185.90
2,633.00
Real GNP "Sh.billion"
1,185.90
1,474.00
Required: (i) The implicit GNP price deflator for the years 2011 and 2019. Interpret your results. (ii) The inflation rate of the economy, using year 2011 as the base year
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