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Balance of payment:
It is an account that summarizes a country’s total payments and total receipts from international economic transactions within a specific period usually one year.The current account is subdivided into three main items: merchandise imports and exports. Services imports and exports and unilateral transfers. Merchandise imports and exports are also referred to as visible trade and services imports and exports and unilateral transfers dubbed invisible trade.
The following are AC and TC functions for various firms (i). AC = 140/Q + 20 (ii) AC - a/Q = k (iii) TC - 10 =2Q + 0.1Q 2 (iv) TC - k - βQ = cQ 2 Where a, k, β and
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