This document serves as a guide to help reflect on my review of Assessment 6 for ECS2601 due on the 14th of June 2023. This is purely for reflection purposes and shows my decisions on the answers of the assessment as well as the marks I obtained for each answer.
Started on Wednesday, 14 June 2023, 4:11 AM
State Finished
Completed on Wednesday, 14 June 2023, 5:42 AM
Time taken 1 hour 30 mins
Marks 52.00/60.00
Grade 86.67 out of 100.00
,Question 1
Complete
Mark 2.00 out of 2.00
MENU
Read the following excerpt from Business Tech below and consider the Profit Payoff matrix to answer the question that follow:
Dashboard / My courses / ECS2601-23-S1 / Welcome Message / Assessment 6
Competition Commission charges Wesbank and Toyota for collusion
“The Competition Commission has referred motor vehicle finance groups FirstRand Bank, Wesbank, and Toyota Financial Services South
Africa Limited (TFS) to the Competition Tribunal for prosecution on allegations of dividing the market by allocating customers or suppliers.
The Commission’s investigation revealed that Wesbank and TFS entered into an agreement to divide markets by allocating customers or
suppliers in the market for the provision of vehicle finance in contravention of section 4(1)(b)(ii) of the Competition Act. The motor vehicle
finance market includes offering vehicle finance, leases, and dealerships financing.
“FirstRand Bank Limited (FirstRand), through its WesBank division, and TFS are involved in the provision of vehicle finance services. They are
therefore supposed to compete. They, however, concluded a shareholder agreement which contains clauses that prevent them from
competing,” the commission said.”
What would happen should either of the two companies decide on their own to continue with providing vehicle finance at the collusion level
while the other provide finance at the cournot level?
a. The profits of both Toyota and Wesbank will not be affected.
b.
The company providing finance at the collusion level will gain more profit.
c. The company providing finance at the cournot level will gain less profit.
d.
The company providing finance at the collusion level will gain less profit.
, Question 2
Complete
Mark 2.00 out of 2.00
MENU
Which of the following is/are TRUE regarding the average revenue?
Dashboard / My courses / ECS2601-23-S1 / Welcome Message / Assessment 6
a. AR(Q) = D
b. AR(Q) > MR(Q)
c. AR(Q) = P(Q)
d. All of the options are true.
Question 3
Complete
Mark 0.00 out of 2.00
Suppose that a competitive firm’s marginal cost of producing output q is given by
MC(q) = 3 + 2q. Assume that the market price of the firm’s product is R9.
What is the firm’s producer surplus?
a. 6
b. 2.25
c. 4.5
d. 9
Question 4
Complete
Mark 2.00 out of 2.00
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. R550
b. R40.62
c. R55
d. R406.25
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