Explanation

• To find the marginal cost (MC), you need to take the derivative of the cost function with respect to quantity (Q).
• Given cost function: C(Q) = 2Q^2 + 10Q + 50

Take the derivative of C(Q) with respect to Q:

• MC(Q) = dC/dd = 4Q + 10

Now, plug in the value Q = 5:

• MC(5) = 4(5) + 10 = 20 + 10 = $30.

Explanation

When both the demand and supply curves shift to the right due to any reason, the quantity traded increases for sure, but nothing specific can be said about prices.

Explanation

To find consumption spending, we can use the GDP formula:

• GDP = Consumption (C) + Investment (I) + Government Spending (G) + Net Exports (NX)

Given:

• GDP = $100 billion
• Government Spending (G) = $20 billion
• Investment (I) = $10 billion
• Net Exports (NX) = -$5 billion (negative because it's an import)

We rearrange the formula to solve for consumption:

• Consumption (C) = GDP - (Investment + Government Spending + Net Exports)
• Substituting the given values:
• Consumption (C) = $100 billion - ($10 billion + $20 billion - $5 billion)
• = $100 billion - $25 billion = $75 billion.

Explanation

Explanation

• A purely competitive firm will produce where Price (P) equals Marginal Cost (MC) because this action maximizes profits.
• At this point, the firm achieves the highest level of profit by producing the quantity where the marginal cost of production equals the price it receives for its output.
• This maximizes the difference between total revenue and total cost, which is the definition of profit maximization in economics.

Explanation

The market structure of monopoly is characterized by a single firm producing a good that lacks close substitutes.

Explanation

• In monopolistic competition, product differentiation refers to offering products that are similar but not identical.
• This means that firms produce goods or services that are slightly different from those of their competitors, allowing them to distinguish their products in the market.
• Product differentiation can take various forms such as branding, quality, design, or customer service.

Explanation

The services sector typically contributes the largest share to Pakistan's GDP.

Explanation

A profit-maximizing firm under perfect competition will produce where marginal cost (MC) equals marginal revenue (MR), which occurs where marginal product (MP) is diminishing.

Explanation

Government spending is a tool of fiscal policy.

Here is tye tools of Fiscal Policy:

1. Government Spending
2. Taxation
3. Transfer Payments
4. Fiscal Expansion
5. Fiscal Contraction