(a) A firm produce under the marginal cost (MC) and marginal revenue (MR) function, in thousands of Ghana cedis, for a product defined by Where q is the quantity produced and sold. It is known that the firm breaks even at 5 units per MC = q + 20 MR620+11q- q² week. You are required to:
(10) Determine the total cost and the total revenue function in terms of q
(11) Determine the output at which profit is maximized.
(11) Calculate the maximum profit.
b) The Economics department of Bank of Ghana has estimated that during periods of high economic growth, the Ghana cedi will appreciates with probability 0.70; in periods of moderate economic growth, it appreciates with probability 0:40, and during periods of low economic growth, the cedi appreciates with probability 0.20. During any period of time the probability of high economic growth in Ghana is 0.30; the probability of moderate economic growth is 0.50 and the probability of low economic growth is 0.20.