Exam (elaborations)
ECS2601 ASSIGNMENT 4 SEMESTER 1 2024
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Exam study book Microecon of Louis Raes - ISBN: 9781783658800 (ALL YOU NEED)
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Microeconomics - Chapter 4: Demand, Supply, and Market Equilibrium
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Samenvatting/Begrippenlijst Microeconomics
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5/20/24, 2:37 PM Assessment 5: Attempt reviewUNISA 2024 ECS2601-24-S1 Welcome Message Assessment 5
QUIZ
Started on Monday, 20 May 2024, 2:04 PM
State Finished
Completed on Monday, 20 May 2024, 2:36 PM
Time taken 31 mins 37 secs
Marks 40.00/40.00
Grade 100.00 out of 100.00
Question 1
Complete
Mark 3.00 out of 3.00
An cement making monopolist with a marginal cost curve of MC=Q was
originally faced with a demand curve:
P=20-2Q.
However, due to an increase in demand for housing, demand shifted to:
P=35-2Q.
Calculate the change in price and quantity due to this shift in demand.
a. Impossible to determine with the given information.
b. An increase in P = 9, and increase in Q = 3.
c. An increase in P = 21, and increase in Q = 7
d. An increase in P = 12, and increase in Q = 4.
Question 2
Complete
Mark 2.00 out of 2.00
A monopolist has equated marginal revenue to zero. The firm has:
a. minimised cost.
b. maximised revenue.
c. maximised profit.
d. minimised profit
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=19401928&cmid=879226 1/7
, 5/20/24, 2:37 PM Assessment 5: Attempt review
Question 3
Complete
Mark 3.00 out of 3.00
Suppose that an industry is characterized as follows:
C = 100 + 2q2 each firm’s total cost function
MC = 4q firm’s marginal cost function
P = 90 – 2Q industry demand curve
MR = 90 – 4Q industry marginal revenue curve
If there is only one firm in the industry, find the monopoly level of profit.
a. R40.62
b. R406.25
c. R55
d. R550
Question 4
Complete
Mark 2.00 out of 2.00
Which is NOT true of state-owned and managed natural monopolies?
a. The state is better able to price at marginal cost (MC) because it can
use its taxing power to cover the losses that result from the MC
pricing.
b. X-inefficiency is common because the incentives for profit are missing.
c. Bureaucrats frequently maximise the operating budgets of their
departments rather than function with a profit-maximisation objective.
d. The wise state government will set price equal to average total cost
(ATC) so that losses will not have to be borne by the taxpayer.
Question 5
Complete
Mark 2.00 out of 2.00
Which of the following curves will coincide on the graph for a monopolist or
monopolistic competitor?
a. Only the demand and average revenue curves will coincide.
b. The demand, average revenue and marginal revenue curves will
coincide.
c. Only the average revenue and marginal revenue curves will coincide.
d. Only the demand and marginal revenue curves will coincide.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=19401928&cmid=879226 2/7
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