Exam (elaborations)
ECS2601 - ASSESSMENT 4 - EXPECTED QUESTIONS AND ANSWERS - 2024
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ECS2601 – ASSESSMENT 4 – EXPECTED QUESTIONS AND ANSWERS - 2024Started on Wednesday, 11 October 2023,
State Finished
Completed on Wednesday, 11 October 2023,
Time taken
Marks 24.00/30.00
Grade 80.00 out of 100.00
Question 1
Consumers are made better off when demand is relatively inelastic and supply
is relatively elastic
Select one:
True
False
Question 2
Every firm maximises profit when …
a.
marginal revenue equals marginal cost.
b.
total costs are minimised.
c.
average revenue equals average variable cost.
d.
average revenue equals average cost.
Question 3
Suppose the city decides to sell permits. What is the maximum price the
vendor would pay for a permit per day?
a.
R75,00
1
, ECS2601 – ASSESSMENT 4 – EXPECTED QUESTIONS AND ANSWERS - 2024
b.
R50,00
c.
None of the options are correct.
d.
R100,00
Question 4
The benefit of a subsidy accrues mostly to consumers (producers) if the ratio
of the elasticity of demand to the elasticity of supply is large (small) in
absolute value.
Select one:
True
False
Question 5
A firm producing six units of output has an average total cost of R200 and has
to pay R300 to its fixed factors of production. The average variable cost is …
a.
R50.
b.
R300.
c.
R150.
d.
R200.
Question 6
If average cost increases as output rises, all else equal, the cost function
exhibits diseconomies of scale.
2
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