pathfinder - The Institute of Chartered Accountants of Nigeria
pathfinder - The Institute of Chartered Accountants of Nigeria
pathfinder - The Institute of Chartered Accountants of Nigeria
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PATHFINDERQUESTION 5<strong>The</strong> table below shows the prices and sales <strong>of</strong> five commodities for 2004 and 2009:2004 2009Commodity Price (N) Quantity ( kg) Price (N) Quantity (kg)Rice A 5000 55 8000 55Beans B 4000 97 7000 97Sugar C 300 22 700 22Salt D 250 25 750 20Garri E 1000 50 1800 60Use 2004 as the base year to calculate the(a) Laspeyre‟s index number (6 Marks)(b) Marshal and Edgeworth‟s index number. (9 Marks)(Total 15 Marks)QUESTION 6<strong>The</strong> weekly cost <strong>of</strong> production C(q) (N`000) and unit price p(q) (N`000) <strong>of</strong> a specialcapsule are respectively expressed as C(q) = 200 + 46q + q 2 ; p(q) = 200 – q (For q < 200) where q is the number <strong>of</strong> kilogrammes <strong>of</strong> capsule produced and sold.Required:(a)(b)(c)Obtain expressions for marginal revenue, marginal cost and marginal pr<strong>of</strong>it.(5 Marks)Determine the production level and price that will maximise pr<strong>of</strong>it using theinformation in (a) above;(5 Marks)Determine the price elasticity <strong>of</strong> demand at the production level thatmaximises pr<strong>of</strong>it. Comment on your result.(5 Marks)(Total 15 Marks)INTERMEDIATE EXAMINATION - NOVEMBER 201014
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