Started on Thursday, 23 May 2024, 10:42 AM
State Finished
Completed on Thursday, 23 May 2024, 11:45 AM
Time taken 1 hour 2 mins
Marks
out of 100.00
Question 1
Complete
Mark 2.00 out of 2.00
In place of a price oor, the government can instead impose a production quota.
Select one:
True
False
Question 2
Complete
Mark 2.00 out of 2.00
A rm producing seven units of output has an average total cost of R150 and
has to pay R350 to its xed factors of production. The average variable cost is …
Short-run equilibrium is e cient because at that point …
a. the price will always equal the average cost of production.
b. accounting pro ts will exist but economic pro ts will be zero.
c. all rms that are operating will be covering their xed cost.
d. the bene t from the last unit produced is exactly equal to the cost of
producing that unit of output.
Question 4
Complete
Mark 2.00 out of 2.00
If accounting pro ts are positive and economic pro ts are negative in the long
run, the proper strategy is to ...
a. go back and recalculate gures, because accounting pro ts can never
be more
than economic pro ts.
b. monitor the situation closely and leave the business the minute
accounting pro ts
start to decline.
c. close down the business and shift the resources to more pro table
ventures.
d. feel satis ed because, in the long run, accounting pro ts will average
zero.
Question 5
Complete
Mark 2.00 out of 2.00
Which of the following is correct regarding a rm operating in an oligopolistic
market?
a. The rm has imperfect information.
b. A cartel is generally illegal.
c. The rm demand is the same as its average revenue.
d. The rm is a utility minimiser.
Suppose Hayley, Chloe and Olivia all purchase small whiteboard markers for
their rooms at R250 each. Hayley’s willingness to pay was R400, Chloe’s
willingness to pay was R350, and Olivia’s willingness to pay was R300. The total
consumer surplus for these three would be ...
a. R250.
b. R1 050.
c. R800.
d. R300.
Question 7
Complete
Mark 2.00 out of 2.00
A rm faces the following average revenue (demand) curve:
P = 120 – 0.02Q
where Q is weekly production and P is price, measured in cents per unit. The
rm’s cost function is given by C = 60Q + 25,000. Assume that the rm
maximizes pro ts.
What is the level of Price?
a. R105
b. R1.20
c. R0.90
d. R60
Question 8
Complete
Mark 2.00 out of 2.00
Themba decides that he would pay as much as R3 500 for a new laptop
computer. He buys the computer and realises consumer surplus of R900. How
much did Themba pay for his computer?
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