Gross Domestic Product (GDP) – the money value of all (final) goods and services produced within the country but excluding net income from abroad.
1. Gross National Product (GNP) – The money value of all (final) goods and services produced by the nationals of a country during a year both within and outside the country.
2. GDP + (Net Income from abroad) = GNP
In most developing countries/economies GNP is lower than GDP because the net Income from abroad is usually very low and particularly negative. We have for instance very few Kenyans who have invested in other (developed) countries compared to the large volumes of foreign direct investment (FDI) in the country.
3. GNP = GDP +[Production - Production by foreigners by nationals abroad (c) within a developing country (F)]
4. GNP = GDP + (C – F); Since (c) is very small compared to (F) then the negative effect (reducing effect) on GDP is high. The negative net Income from abroad drastically reduces GNP since GNP = GDP + [-(C – F)].
Wilfykil answered the question on February 7, 2019 at 07:24
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Given the following data in millions of shillings pertaining to an economy, determine Net National and
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(Solved)
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Date posted:
February 7, 2019
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Answers (1)
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You have been hired as a consultant by a firm producing bread to advise on a pricing strategy that would
enable the firm to maximize profits....
(Solved)
You have been hired as a consultant by a firm producing bread to advise on a pricing strategy that would
enable the firm to maximize profits. This firm is a monopolist which sells in two distinct markets, one of
which is completely sealed off from the other.
As part of the analysis, you establish that the total demand for the firm‟s output is given by the
following equation:
Q = 50 – 0.5P
and the demand for the firm‟s output in the two markets is given by the following equations:
Q1 = 32 – 0.4P1 and
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Where: Q = total output
P = Price
Q1 = Output sold in Market 1
Q2 = Output sold in Market 2
P1 = Price charged in Market 1
P2 = Price charged in Market 2
The cost of production is given by C = 50 + 40Q
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Date posted:
February 7, 2019
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Answers (1)
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You have been hired as a consultant by a firm producing bread to advise on a pricing strategy that would
enable the firm to maximize profits....
(Solved)
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enable the firm to maximize profits. This firm is a monopolist which sells in two distinct markets, one of
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As part of the analysis, you establish that the total demand for the firm‟s output is given by the
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Q = 50 – 0.5P
and the demand for the firm‟s output in the two markets is given by the following equations:
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Where: Q = total output
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Q2 = Output sold in Market 2
P1 = Price charged in Market 1
P2 = Price charged in Market 2
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Date posted:
February 7, 2019
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Answers (1)
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