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2025 - ECS2601 - ASSESSMENT 5 - QUESTIONS AND ANSWERS - SEMESTER 1 R85,33
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2025 - ECS2601 - ASSESSMENT 5 - QUESTIONS AND ANSWERS - SEMESTER 1

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  • January 7, 2025
  • 8
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
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2025 – ECS2601 – ASSESSMENT 5 – EXPECTED Q&A



Assessment 5
Started on Friday, 1 November 2024,
State Finished
Completed on Friday, 1 November 2024,
Time taken
Marks 34.00/34.00
Grade 100.00 out of 100.00


Question 1
Given the relationship between the demand curve (Demand) and the marginal
revenue (MR) curve of a monopolist in terms of their steepness (slope), What is the
MR curve function , when the Demand curve function is given by:

P = 100 - 4Q



a.
MR = 50 - 2Q

b.
MR = 200 - 8Q

c.
MR = 100 - 2Q

d.
MR = 100 - 8Q

Feedback
Your answer is correct.


The correct answer is:
MR = 100 - 8Q



Question 2
A firm faces the following average revenue (demand) curve:
1

, 2025 – ECS2601 – ASSESSMENT 5 – EXPECTED Q&A


P = 120 – 0.02Q

where Q is weekly production and P is price, measured in cents per unit. The firm’s
cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits.

What is the level of Profit?


a.

8 750 cents per week.

b.
20 000 cents per week.

c.
25 000 cents per week.

d.
377 800 cents per week.

Feedback
Your answer is correct.


The correct answer is:
20 000 cents per week.



Question 3
In a Cournot duopoly model, one characteristic of the equilibrium position is that …



a.
both firms produce the same amount of output.
b.
output is less that the single-price monopoly output would be if only one firm were in
the market.
c.
output is the same as would exist in a competitive market.
d.

2

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