Please solve all the Questions. All the information required is as provided in the questions.

QUESTION FOUR (a) Briefly discuss the theoretical relationship between money supply and Inflation. (6 marks) (b) Discuss the main limitations of applying credit control instruments in a developing economy. (6 marks) (c) What role do non-bank financial institutions play in economic growth and development? (8 marks) (Total: 20 marks) QUESTION FIVE (a) In a perfectly competitive market, a firm's average revenue and cost functions are given as follows: AR = = Q -P where a, p are constants and Q is the output AC = x-P AR is the average revenue and AC is the average cost. on the basis of the functions given above, determine: Total revenue function. (2 marks) (ii) Total cost function. (2 marks) (iii) Total break-even output level. (2 marks) (b) With the help of a well-illustrated diagram, explain how the long-run equilibrium of a perfect competitive model is achieved in an industry. (6 marks) (c) Using an appropriate diagram, illustrate the profit maximizing output for a monopolistic firm. (5 marks) (d) Explain three advantages of economies of scale to the firm. (3 marks) QUESTION SIX (a) () What is meant by the term "production function"? (2 marks) (ni) Giving appropriate examples, explain the term "fixed factors of production" (3 marks) (b) Explain and illustrate the resultant hypothetical total and marginal product curves in an economy with only two factors of production, one of which is fixed. (8 marks) (c) () What is a "production possibility frontier