Exam (elaborations)
Ecs1501 Assignment % guaranteed
- Course
- Economics IA
- Institution
- University Of South Africa (Unisa)
Ecs1501 Assignment % guaranteed
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Assessment 9: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=225UNISA 2024 ECS1501-24-Y Assessments Assessment 9
QUIZ
Started on Tuesday, 24 September 2024, 8:18 PM
State Finished
Completed on Tuesday, 24 September 2024, 8:31 PM
Time taken 13 mins 5 secs
Marks 11.00/11.00
Grade 100.00 out of 100.00
Question 1
Complete
Not graded
I con�rm
that this assessment will be my own individual work;
that I will not communicate with anyone else in any way during the completion of this
assessment;
that I will not cheat in any way in completing and submitting this assessment.
I con�rm.
I do not con�rm.
1 of 12 2024/09/24, 20
,Assessment 9: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=225
Question 2
Complete
Mark 1.00 out of 1.00
A perfectly competitive market is described as a market with
a few �rms producing differentiated goods.
a few buyers, many sellers and the production of differentiated goods.
a large number of �rms that each individually sets the price of their goods.
many buyers, many sellers and the production of homogenous goods.
In a perfectly competitive market, there are many buyers and sellers, all of whom are
small relative to the size of the market. This market structure is characterised by
several key features:
1. Many Buyers and Sellers: There are numerous buyers and sellers in the market,
and no single buyer or seller has the power to in�uence the market price. Each
buyer and seller is a price taker, meaning they accept the market price as given
and cannot change it.
2. Homogeneous Products: The products or services sold in a perfectly
competitive market are homogeneous (meaning they are identical and
indistinguishable from one another).
3. Perfect Information: All buyers and sellers in a perfectly competitive market
have access to perfect information. T
4. Free Entry and Exit: There are no barriers to entry or exit in the market.
5. Firms are Price Takers: Each �rm in a perfectly competitive market is so small
compared to the overall market that its actions cannot affect the market price.
Therefore, each �rm accepts the market price as given and adjusts its quantity
of output to maximise pro�ts at that price.
�. Pro�t Maximisation: Firms in a perfectly competitive market aim to maximise
pro�ts.
7. No government intervention: The market answers the questions What? How?
and For whom
2 of 12 2024/09/24, 20
,Assessment 9: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=225
Question 3
Complete
Mark 1.00 out of 1.00
Which one of the following statements is incorrect? Under perfect competition
�rms may earn an economic pro�t in the long run.
�rms may suffer economic losses in the short run.
�rms may earn normal pro�t in the short run.
�rms may earn economic pro�ts in the short run.
In the short run, the perfectly competitive �rm may earn a loss, a normal pro�t or an
economic pro�t, but in the long run only normal pro�t is earned. In the long run, �rms
making a loss will leave the market (driving the market price up) or if economic pro�ts
are made, new �rms will enter the market (putting downward pressure on the market
price). Thus, market forces will ensure that only normal pro�t is earned in the long
run.
3 of 12 2024/09/24, 20
,Assessment 9: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=225
Question 4
Complete
Mark 1.00 out of 1.00
The �gure below shows the price, marginal cost and average cost curves facing a
perfectly competitive �rm.
What is the total daily revenue of the pro�t-maximising �rm?
R800
R720
R960
R2 000
At a price of R20, the �rm will produce 100 units.
The total daily revenue of the pro�t-maximising �rm is
TR = P X Q
= R20 x 100
= R2 000
4 of 12 2024/09/24, 20
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