Exam (elaborations)
ECS2601 Assignment 5 Semester 1 2023
- Institution
- University Of South Africa
ECS2601 Assignment 5 Semester 1 2023
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ECS2601Assignment 5
Semester 1 2023
(313595)
[School]
[Course title]
, ECS2601 Assignment 5 Semester 1 2023 (313595)
QUESTION 1
Which of the following statements regarding a profit-maximising monopolist
is FALSE?
a. This firm would respond to a fall in the price of a variable input by
increasing its output and reducing its price.
b. This firm would respond to a fall in the price of a fixed input by increasing
its output and reducing its price.
c. This firm might respond to a fall in demand by reducing both its output and
its price.
d. This firm might respond to a fall in demand by reducing its output and
increasing its price.
The false statement regarding a profit-maximizing monopolist is:
a. This firm would respond to a fall in the price of a variable input by increasing its
output and reducing its price.
QUESTION 2
Which condition/s can give rise to a monopoly power?
a. All of the options are correct
b. Brand dominance.
c. Cost advantages
d. Positive externalities.
The condition/s that can give rise to monopoly power are:
a. All of the options are correct.
QUESTION 3
A natural monopoly exists in an industry with constant returns to scale. Select
one:
True or False
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