1. Purchasing Power Erosion:
   Inflation erodes the purchasing power of money. As prices rise, each unit of currency buys fewer goods and services. This reduction in purchasing power can affect consumers' ability to afford the same quantity of goods they could purchase before inflation.
2. Uncertainty and Planning Challenges:
   High or unpredictable inflation introduces uncertainty into the economy. Businesses may find it challenging to plan for the future, set prices, and make long-term investment decisions. Uncertainty can lead to reduced economic activity and hinder economic growth.
3. Interest Rate Volatility:
   Central banks often respond to inflation by raising interest rates to cool down the economy. Higher interest rates can lead to increased borrowing costs for businesses and consumers. This can result in reduced spending, investment, and economic activity.
4. Fixed Income Squeeze:
   Individuals with fixed incomes, such as pensioners or those on fixed salaries, may experience a reduction in their real income. If wages and income do not keep pace with inflation, people on fixed incomes may find it harder to maintain their standard of living.
5. Distorted Price Signals:
   Inflation can distort price signals in the economy. Prices are essential for conveying information about relative scarcity and value. When prices are distorted by inflation, it becomes more difficult for businesses and consumers to make informed decisions.
6. Redistribution of Wealth:
   Inflation can lead to a redistribution of wealth. Debtors, who owe fixed amounts, benefit from inflation as they can repay their debts with less valuable money. Conversely, creditors may experience a reduction in the real value of the money they are repaid.
7. Reduced Saving and Investment:
   High inflation rates may discourage saving and investment. When the value of money is eroding, people may be less inclined to save, and investors may be more hesitant to commit funds for long-term projects.
8. International Competitiveness:
   Inflation can affect a country's international competitiveness. If prices rise more rapidly in one country compared to its trading partners, the cost of exports may increase, leading to a decline in exports and a trade imbalance.
9. Speculative Behavior:
   Inflation can encourage speculative behavior, as individuals seek to protect their wealth from eroding purchasing power. This behavior may lead to asset bubbles and market distortions.
10. Social and Political Consequences:
    High inflation rates can lead to social and political consequences. Citizens may become discontented with rising prices and reduced purchasing power, potentially leading to protests and social unrest.

1. Market Segmentation:
   Effective price discrimination requires the ability to identify and separate different market segments with varying price elasticities of demand. Markets should be distinguishable based on factors such as geography, demographics, or willingness to pay.
2. Imperfect Arbitrage:
   There should be limited opportunities for resale or arbitrage between markets. If consumers can easily purchase a product in a lower-priced market and resell it in a higher-priced market, price discrimination becomes less effective.
3. Price Elastic Demand in High-Priced Segments:
   For effective price discrimination, the segments targeted with higher prices should have a relatively inelastic demand. Consumers in these segments should be less responsive to changes in price, allowing the seller to capture more revenue without a significant loss in quantity sold.
4. Ability to Control and Monitor Markets:
   The seller must have the ability to control and monitor different markets to implement price discrimination successfully. This may involve regulatory compliance, contractual agreements, or geographical control to prevent arbitrage.
5. Information Asymmetry:
   Information asymmetry, where the seller possesses more information about consumer preferences and willingness to pay than the consumers themselves, can facilitate effective price discrimination. This allows the seller to set prices based on individual consumer characteristics.
6. No or Limited Substitute Goods:
   The presence of close substitutes can undermine price discrimination. Effective price discrimination is more likely when there are limited or no close substitutes available, reducing the ability of consumers to switch to lower-priced alternatives.
7. Unique Products or Services:
   The more unique or differentiated the product or service, the greater the potential for price discrimination. Unique offerings with limited comparables give sellers more flexibility in setting different prices for different segments.
8. Consumer Heterogeneity:
   Different consumer groups should have diverse preferences, income levels, or demand patterns. When consumers within a market segment exhibit heterogeneity, the seller can tailor prices to capture varying levels of consumer surplus.
9. No Legal Restrictions:
   Legal and regulatory environments play a crucial role. Price discrimination may be restricted or prohibited in certain jurisdictions. To be effective, price discrimination requires a legal framework that allows businesses to differentiate prices without facing legal challenges.
10. Technological Advancements:
    Advanced technology, such as sophisticated data analytics and pricing algorithms, can enhance a seller's ability to implement and monitor price discrimination. Technology enables the collection of valuable consumer data and facilitates dynamic pricing strategies.

1. Currency in Circulation:
   The amount of physical currency (coins and paper money) circulating in the economy is a crucial determinant. It includes both the currency held by the public and the currency held by banks.
2. Demand Deposits:
   Demand deposits in commercial banks contribute to the money supply. These are funds deposited by individuals and businesses in checking or current accounts, which can be withdrawn on demand.
3. Time Deposits:
   While time deposits (savings accounts and certificates of deposit) represent savings rather than immediate spending, they also play a role in the money supply. Some portion of time deposits may be quickly converted into demand deposits or currency.
4. Bank Reserves:
   The reserves held by commercial banks with the central bank influence the money supply. Changes in reserve requirements set by the central bank can impact the ability of banks to create new money through lending.
5. Monetary Base:
   The monetary base, also known as high-powered money or the central bank's money, includes currency in circulation and commercial banks' reserves held with the central bank. It serves as the foundation for the broader money supply.
6. Open Market Operations:
   Central banks conduct open market operations by buying or selling government securities. These transactions impact the level of reserves in the banking system, influencing the money supply.
7. Discount Rate:
   The discount rate, set by the central bank, affects the cost of borrowing from the central bank. Changes in the discount rate can influence the level of reserves and, consequently, the money supply.
8. Bank Lending:
   The willingness of commercial banks to lend money affects the money supply. When banks increase lending, they create new money in the form of loans, contributing to the overall money supply.
9. Velocity of Money:
   The velocity of money, representing the rate at which money circulates in the economy, impacts the money supply. Higher velocity can lead to a higher effective money supply for a given quantity of money.
10. Government Policy:
    Government policies, such as fiscal and monetary policies, can influence the money supply. For example, changes in government spending or taxation can impact the overall level of money in the economy.
11. Economic Conditions:
    The broader economic environment, including inflation, economic growth, and financial stability, can affect the demand for money and, consequently, the money supply.

1. Protection of Domestic Industries:
   Countries may impose trade restrictions, such as tariffs or quotas, to protect their domestic industries from foreign competition. This is often done to safeguard employment, prevent the decline of key industries, and maintain a level playing field.
2. National Security Concerns:
   Some countries restrict trade in certain goods or technologies due to national security concerns. This includes restrictions on the export or import of military equipment, sensitive technologies, or goods that could be used for illicit purposes.
3. Infant Industry Protection:
   Governments may implement trade restrictions to protect emerging or "infant" industries that are not yet competitive on a global scale. These restrictions provide time for domestic industries to develop and become more competitive.
4. Prevention of Dumping:
   Dumping occurs when a country exports goods at prices lower than their production costs, potentially harming domestic industries. Trade restrictions, such as anti-dumping duties, can be imposed to counteract the negative effects of dumping.
5. Correction of Trade Imbalances:
   Countries facing persistent trade deficits may impose restrictions to reduce imports and improve their trade balance. This is often done to protect foreign exchange reserves and maintain economic stability.
6. Environmental and Health Concerns:
   Trade restrictions may be imposed to address environmental or health concerns. For example, restrictions may be placed on the import of products that do not meet certain environmental standards or that pose health risks to consumers.
7. Intellectual Property Protection:
   Countries may restrict trade to protect intellectual property rights. This includes measures to prevent the unauthorized reproduction or distribution of patented products, copyrighted material, or proprietary technologies.
8. Cultural Preservation:
   Some countries impose trade restrictions to preserve their cultural heritage. This may involve restrictions on the import of certain cultural or artistic goods to prevent the erosion of domestic cultural industries.
9. Income Distribution and Labor Standards:
   Trade restrictions may be used to address concerns about income distribution and labor standards. Countries may restrict imports from countries with lower labor standards to prevent unfair competition and maintain social welfare standards.
10. Retaliation:
    Trade restrictions may be imposed as a form of retaliation against another country's trade policies. This can lead to a trade dispute, with each country taking measures to protect its economic interests.

1. Financial Assistance:
   One of the primary roles of the IMF is to provide financial assistance to member countries facing balance of payments problems. Member countries can access IMF financial resources through lending programs designed to stabilize their economies and restore confidence.
2. Economic Surveillance:
   The IMF conducts regular assessments of the global economy and member countries through economic surveillance. This involves monitoring economic and financial developments, providing policy advice, and identifying potential risks to stability.
3. Exchange Rate Stability:
   The IMF works to promote exchange rate stability and prevent competitive currency devaluations. It provides a forum for member countries to discuss and coordinate exchange rate policies, aiming to foster a stable international monetary system.
4. Policy Advice and Technical Assistance:
   The IMF offers policy advice and technical assistance to member countries in areas such as fiscal policy, monetary policy, and structural reforms. This assistance is aimed at helping countries design and implement effective economic policies.
5. Capacity Development:
   The IMF supports capacity development in member countries by providing training and technical assistance to strengthen institutions, improve economic governance, and enhance policymakers' skills in macroeconomic management.
6. Crisis Prevention and Resolution:
   The IMF works to prevent and resolve financial crises. It provides early warning signals, assesses vulnerabilities, and collaborates with member countries to design policies that can prevent the emergence or escalation of financial crises.
7. Global Economic Coordination:
   The IMF serves as a platform for global economic coordination. It facilitates discussions and coordination among member countries on global economic issues, fostering a cooperative approach to addressing common challenges.
8. Research and Data Provision:
   The IMF conducts research on various aspects of international monetary and financial systems. It provides economic analysis, research papers, and data to enhance the understanding of global economic trends and challenges.
9. Poverty Reduction and Development:
   The IMF integrates poverty reduction and development considerations into its policy advice and programs. It collaborates with other international institutions to support member countries' efforts to achieve sustainable and inclusive economic growth.
10. Global Financial Stability:
    The IMF contributes to global financial stability by monitoring and assessing risks in the international financial system. It works to enhance the resilience of member countries and the global financial architecture to prevent systemic crises.

1. Skill Levels:
   Agricultural work often requires less specialized skills compared to industrial jobs. Industrial sectors typically demand a higher level of education, training, and technical expertise, which can command higher wages.
2. Technology and Mechanization:
   Industrial sectors often leverage advanced technology and machinery, leading to increased productivity and efficiency. The use of technology reduces the labor intensity of industrial jobs, allowing workers to contribute more value and, consequently, earn higher wages.
3. Seasonal Nature of Agriculture:
   Agricultural work is often seasonal, with specific tasks concentrated during planting and harvest seasons. The temporary and cyclic nature of agricultural employment can result in lower wages compared to year-round, stable employment in the industrial sector.
4. Labor Market Conditions:
   The labor market for agricultural workers may be characterized by greater competition and a surplus of available labor. This abundance of labor can put downward pressure on wages in the agricultural sector.
5. Bargaining Power:
   Workers in the industrial sector may have stronger bargaining power, especially if they are unionized. Collective bargaining and organized labor movements often lead to better wage negotiations, improved working conditions, and benefits for industrial workers.
6. Capital Intensity:
   Industrial activities often require significant capital investment in machinery and infrastructure. The higher capital intensity allows industries to achieve economies of scale and enhance labor productivity, contributing to the ability to pay higher wages.
7. Value of Output:
   Industrial production often generates higher value-added products compared to agriculture. The economic value of industrial output is typically higher, allowing industrial employers to afford higher wages for their workers.
8. Educational Requirements:
   Industrial jobs, especially those in manufacturing and technology, usually require a higher level of education and skills. Workers with specialized education and training tend to command higher wages, whereas many agricultural tasks can be performed with less formal education.
9. Market Forces:
   Supply and demand dynamics in the labor market also play a role. If the demand for industrial labor is higher than the supply, wages tend to increase. Conversely, if there is an oversupply of agricultural labor, wages may remain lower.
10. Government Policies:
    Government policies related to minimum wages, labor regulations, and social protections can influence wage levels. In some cases, agricultural workers may be subject to lower minimum wage standards compared to their industrial counterparts.

• Human Capital: The education and skill levels of the population.
• Physical Capital: Adequate infrastructure, including transportation, communication, and energy.
• Natural Resources: The availability and effective utilization of natural resources.
• Technology and Innovation: Access to and adoption of new technologies.
• Political Stability and Governance: A stable political environment and effective governance systems.
• Macroeconomic Policies: Sound fiscal and monetary policies for economic stability.
• Trade Policies: An open and liberalized trade environment.
• Financial System: A well-functioning financial system, including banks and capital markets.
• Social Infrastructure: Education, healthcare, housing, sanitation, and social services.
• Income Distribution and Poverty Reduction: Equitable distribution of income and poverty reduction policies.
• Globalization: Integration into the global economy through trade and investment.
• Institutional Quality: The quality of institutions, including the rule of law and property rights protection.

Key Points:

1. Total Utility vs. Marginal Utility:
   
   • Total Utility (TU): This refers to the total satisfaction or pleasure a consumer gets from consuming a certain quantity of a good.
   • Marginal Utility (MU): This is the additional satisfaction gained from consuming one more unit of the good.
2. Diminishing Marginal Utility:
   
   • The law states that as a person consumes more units of a good while keeping the consumption of other goods constant, the marginal utility derived from each additional unit decreases.
   • In simpler terms, the first unit of a good provides a significant boost to satisfaction, but as more units are consumed, the extra satisfaction from each additional unit diminishes.
3. Reasons for Diminishing Marginal Utility:
   
   • Satiation: The initial units of a good address the most urgent needs or wants, providing high satisfaction. As consumption continues, the most pressing desires are already fulfilled, leading to diminishing additional satisfaction.
   • Changing Preferences: Consumer preferences can shift as they consume more of a good. What was initially enjoyable may become less so over time.
   • Limited Capacity for Enjoyment: Individuals have a finite capacity to derive pleasure from a particular good or service. Beyond a certain point, the capacity for enjoyment reaches its limit.
4. Graphical Representation:
   
   • The concept is often represented graphically with a downward-sloping curve on a graph where the X-axis represents the quantity consumed, and the Y-axis represents the marginal utility or total utility. The curve starts high and gradually decreases, indicating diminishing marginal utility.
5. Implications for Consumer Behavior:
   
   • The law has significant implications for consumer decision-making. Rational consumers seek to allocate their resources in a way that maximizes their total satisfaction. This involves comparing the marginal utility to the price of each good to determine the optimal consumption level.

• Negative Slope: Indifference curves typically have a negative slope.
• Convex Shape: Indifference curves are generally convex to the origin.
• Non-Intersecting: Indifference curves for different levels of satisfaction do not intersect.
• Higher Indifference Curve Represents Higher Satisfaction: Indifference curves higher on the graph represent higher levels of satisfaction.
• Indifference Map: A collection of indifference curves is known as an indifference map.
• Indifference Curves Do Not Touch Axes: Indifference curves do not touch either axis.
• Transitivity: Indifference curves assume the transitivity of consumer preferences.

Real Wage Rigidity:

• Inflation can lead to a situation where nominal wages increase more slowly than prices (inflation-adjusted or real wages).
• If nominal wages do not keep up with inflation, workers may experience a decline in their real purchasing power.
• This can result in a situation where the cost of labor for firms is relatively high compared to the goods and services produced.
• To offset these increased costs, firms might reduce employment levels, leading to unemployment.

Menu Costs and Price Adjustment:

• Inflation can lead to higher menu costs for businesses.
• Menu costs are the costs associated with changing prices.
• When prices are rising (inflation), businesses may need to frequently update their prices, incurring additional costs.
• Firms may be reluctant to change prices frequently, leading to situations where relative prices are distorted.
• This can affect the allocation of resources and lead to unemployment as some industries may be overvalued while others are undervalued.

Interest Rates and Investment:

• High inflation rates are often associated with high nominal interest rates.
• High interest rates can discourage investment by increasing the cost of borrowing for businesses.
• Reduced investment can lead to lower levels of economic activity and job creation, contributing to higher unemployment rates.

Uncertainty and Planning Horizons:

• Inflation introduces uncertainty into the economy, making it difficult for businesses to plan for the future.
• Uncertainty about future prices can lead to cautious behavior, including reduced hiring and investment.
• Businesses may delay or scale back expansion plans due to the uncertainty associated with inflation, contributing to unemployment.

Redistribution Effects:

• Inflation can redistribute income and wealth in unexpected ways.
• For example, if certain individuals or groups are better positioned to protect themselves against inflation (e.g., through investments in real assets), while others are not, income inequality may increase.
• Increased income inequality can lead to social and political pressures that, in turn, impact economic policies.
• These policy responses can influence unemployment rates.

Reduced Purchasing Power:

• As prices rise due to inflation, the purchasing power of consumers may decline.
• If consumers are unable to afford the same quantity of goods and services as before, businesses may experience reduced demand for their products.
• Reduced demand can lead to lower production levels and, consequently, to job losses and increased unemployment.

Key features of partial equilibrium analysis include:

1. Isolation of Variables: In partial equilibrium analysis, economists isolate specific variables, such as the price and quantity of a particular good or service, and examine the impact of changes in these variables on the market.
2. Assumption of Ceteris Paribus: Ceteris paribus is a Latin phrase that means "all else being equal." In partial equilibrium analysis, the assumption of ceteris paribus is crucial. It implies that only the market under consideration is allowed to change, while all other relevant factors are assumed to remain constant.
3. Limited Scope: Partial equilibrium analysis is typically narrow in scope and does not consider the broader interactions between different markets or the economy as a whole. It is useful for understanding the specific dynamics of a particular market or industry.
4. Static Analysis: Partial equilibrium analysis often assumes a static environment, where factors like technology, preferences, and external influences are considered fixed. This allows economists to focus on the short-term effects of changes in specific variables.
5. Applicability to Microeconomics: Partial equilibrium analysis is commonly associated with microeconomics, where it is used to study the behavior of individual markets, consumers, and firms. Microeconomic issues, such as supply and demand for a specific good, are often analyzed using partial equilibrium methods.
6. Contrast with General Equilibrium: The counterpart to partial equilibrium analysis is general equilibrium analysis, which considers the interactions and simultaneous adjustments of all markets in an economy. General equilibrium analysis provides a more comprehensive view of the economy but can be more complex.

Example: For instance, when analyzing the market for oranges, partial equilibrium analysis would focus solely on factors affecting the supply and demand for oranges, such as changes in weather conditions or consumer preferences for orange juice. It would not consider how changes in the orange market might affect markets for other fruits or agricultural products.

Monetary Policy:

➫ Interest Rate Adjustments: Central banks can use monetary policy tools to influence interest rates. Raising interest rates can attract foreign capital seeking higher returns, leading to an increase in demand for the domestic currency.

Fiscal Policy:

➫ Balanced Budgets: Implementing fiscal policies that aim for a balanced budget or a budget surplus can instill confidence in the economy. This can attract foreign investment and strengthen the currency.

Foreign Exchange Reserves:

➫ Accumulation of Reserves: Governments can build and maintain substantial foreign exchange reserves. This can act as a buffer against currency depreciation and signal to the market that the government is committed to stability.

Trade Policies:

➫ Export Promotion: Encouraging exports and reducing trade deficits can contribute to currency strength. Governments can provide incentives for exporters, negotiate trade agreements, and invest in industries that have a competitive advantage.

Structural Reforms:

➫ Economic Diversification: Implementing structural reforms to diversify the economy can attract foreign investment. A more diversified and robust economy can contribute to currency strength.

Inflation Control:

➫ Inflation Targeting: Maintaining low and stable inflation rates can enhance a country's currency. Central banks may adopt inflation targeting policies to anchor expectations and promote currency stability.

Political Stability and Governance:

➫ Political Stability: A stable political environment is crucial for attracting foreign investment. Governments should pursue policies that promote political stability and good governance to enhance confidence in the currency.

Debt Management:

➫ Debt Reduction: Managing and reducing national debt can positively impact currency strength. High levels of debt may erode investor confidence and lead to currency depreciation.

Communication Strategies:

➫ Transparent Communication: Clear and transparent communication from central banks and government officials about their economic policies and intentions can help manage market expectations and build confidence.

2. Real Output:

Quantity Theory of Money: Assumes real output to be constant, implying full employment in the economy.
Liquidity Preference Theory of Money: Acknowledges that real output levels can vary, and the economy may not always be at full employment.

3. Nature of Money:

Quantity Theory of Money: Views money primarily as a medium of exchange.
Liquidity Preference Theory of Money: Recognizes money as serving the functions of a medium of exchange, store of value, and standard of deferred payment.

4. Determinants of Money Demand:

Quantity Theory of Money: Suggests that only real variables (like real output) influence money demand.
Liquidity Preference Theory of Money: Keynes argues that interest rates, a monetary variable, play a crucial role in determining the demand for money.

5. Number of Assets:

Quantity Theory of Money: Typically focuses on money as a single asset.
Liquidity Preference Theory of Money: Recognizes a variety of assets and their role in influencing individuals' decisions to hold money.

6. Impact of Interest Rates on Money Demand:

Quantity Theory of Money: Modern versions often predict that changes in interest rates have little effect on money demand.
Liquidity Preference Theory of Money: Emphasizes the impact of interest rate changes on the demand for money.

1. Economic Decline:

Unemployment contributes to a decrease in overall economic output as there are fewer people actively participating in the workforce, leading to lower production levels and reduced economic growth.

2. Poverty and Income Inequality:

Unemployed individuals often face financial hardships, leading to poverty and income inequality. The loss of income can result in a decline in the standard of living for affected households.

3. Reduced Consumer Spending:

Unemployed individuals have less disposable income, leading to a decrease in consumer spending. This reduction in demand for goods and services can further contribute to economic downturns.

4. Social and Psychological Impact:

Long-term unemploymen can lead to social issues such as increased stress, mental health problems, and a sense of isolation. It can also negatively impact family relationships and community well-being.

5. Skills Erosion:

Prolonged unemployment can result in a loss of skills and a decrease in employability. This erosion of skills can make it more challenging for individuals to re-enter the workforce even when job opportunities arise.

6. Strain on Social Services:

High levels of unemployment can strain social services such as unemployment benefits, healthcare, and housing assistance. Governments may face increased financial burdens in providing support to the unemployed.

7. Wasted Human Capital:

Unemployment represents a waste of human capital and talent in the economy. The skills and potential contributions of unemployed individuals are not utilized, leading to an underutilization of resources.

8. Crime Rates:

There is often a correlation between high unemployment rates and increased crime rates. Economic desperation and lack of opportunities may lead some individuals to engage in criminal activities as an alternative means of survival.

9. Decline in Workforce Productivity:

A high level of unemployment can lead to a decline in overall workforce productivity. With fewer workers contributing to economic activities, the efficiency and output of industries may suffer.

10. Government Budgetary Pressures:

Unemployment places pressure on government budgets due to increased spending on unemployment benefits and social assistance programs. Simultaneously, tax revenues may decrease as fewer people are earning income.

11. Reduced Investment:

Uncertainty stemming from high unemployment rates can discourage business investment. Companies may delay expansion plans and capital projects, contributing to a slowdown in economic development.

Consequences of wage control

1. Reduced Incentives:

Wage controls may lead to reduced motivation and work effort among employees as they may feel that their efforts are not adequately rewarded.

2. Skill Shortages:

With controlled wages, skilled workers may seek higher-paying opportunities elsewhere, leading to skill shortages in certain industries or professions.

3. Labor Market Distortions:

Wage controls can create distortions in the labor market by suppressing the natural forces of supply and demand, potentially leading to imbalances in the availability of jobs and workers.

4. Unemployment or Underemployment:

In some cases, wage controls may contribute to higher unemployment or underemployment as employers may be less inclined to hire when wages are artificially limited.

5. Reduced Productivity:

Employees may be less motivated to increase productivity when wages are controlled, impacting overall economic efficiency and growth.

6. Strain on Social Services:

High levels of unemployment can strain social services such as unemployment benefits, healthcare, and housing assistance. Governments may face increased financial burdens in providing support to the unemployed.

7. Wasted Human Capital:

Unemployment represents a waste of human capital and talent in the economy. The skills and potential contributions of unemployed individuals are not utilized, leading to an underutilization of resources.

8. Decline in Workforce Productivity:

A high level of unemployment can lead to a decline in overall workforce productivity. With fewer workers contributing to economic activities, the efficiency and output of industries may suffer.

9. Crime Rates:

There is often a correlation between high unemployment rates and increased crime rates. Economic desperation and lack of opportunities may lead some individuals to engage in criminal activities as an alternative means of survival.

10. Government Budgetary Pressures:

Unemployment places pressure on government budgets due to increased spending on unemployment benefits and social assistance programs. Simultaneously, tax revenues may decrease as fewer people are earning income.

11. Reduced Investment:

Uncertainty stemming from high unemployment rates can discourage business investment. Companies may delay expansion plans and capital projects, contributing to a slowdown in economic development.

(ii) The average fixed cost function.

(iii) The marginal revenue function.

(iv) The profit maximising level of output.