ECS2601 Assignment 4 (Complete Q&A) Semester 1 2023 with Guidlines

In the short run, a perfectly competitive firm earning positive profit is … a. at the minimum of its ATC. b. on the upward sloping portion of its ATC. c. on the downward sloping portion of its ATC. d. above its ATC. If current output is less than the profit-maximising output, then the next unit produced will… a. increase revenue more than it increases cost. b. decrease profit. c. increase revenue without increasing cost. d. increase cost more than it increases revenue. Which of the following statements is correct regarding the perfectly competitive industry? a. In the long run, firms’ economic profit can take any value. b. Firms will always make positive economic profit in the long run, unlike in the short run. c. A firm making zero economic profit is essentially covering all the opportunity costs of production. d. Due to free entry and exit, the level of production efficiency for a firm is greater in the short run than in the long run. Each point on the long-run average cost curve is a … a. level of average cost that is the lowest possible average cost for that level of output. b. point on the long-run marginal cost curve as well because the long-run average cost curve and long-run marginal cost curve are always identical. c. minimum point on some short-run average cost curve as well. d. cost of production based on a particular input price ratio (Other points on the long-run average cost curve show cost of output with alternative input prices.) Dashboard / Courses / UNISA / 2023 / Semester 1 / ECS2601-23-S1 / Welcome Message / Assessment 4  Dashboard Calendar Question 5 Complete Mark 2.00 out of2.00 Question 6 Complete Mark 2.00 out of2.00 Question 7 Complete Mark 2.00 out of2.00 Question 8 Complete Mark 2.00 out of2.00 Question 9 Complete Mark 2.00 out of2.00 The market supply curves and market demand curves for books are given as follows: Supply curve: P = 0.Q Demand curve: P = 11 – 0.00002Q The short-run marginal cost curve: MC = 0.1 + 0.0009Q Assuming all firms in the market are identical, how many firms are producing books? a. 5 firms b. 500 firms c. Given the information provided, it cannot be determined. d. 50 firms An L-shaped isoquant … a. would indicate that the firm could switch from one output to another costlessly. b. would indicate that the firm could not switch from one output to another. c. would indicate that capital and labour cannot be substituted for each other in production. d. is impossible. A firm should always produce at an output at which long-run average cost is minimized. Select one: True False Freddy opens his own sneaker shop in a property he owns which cost R5,000 per month to run, but he makes R10,000 a month. Freddy could have worked for a popular retail storefor R2,000 per month, or rented out the store for R1,500 per month. Caculate the economic profit. a. R1500 b. R1300 c. R7000 d. R5000 A sales tax of R1 per unit of output is placed on a particular firm whose product sells for R5 in a competitive industry with many firms. How will this tax affect the cost curves for the firm? a. all of the options are true. b. Total cost becomes TC + q since the tax rate is t = 1 c. Average cost is now AC + 1. d. Marginal cost becomes MC + 1 Dashboard / Courses / UNISA / 2023 / Semester 1 / ECS2601-23-S1 / Welcome Message / Assessment 4 Dashboard Calendar Question 10 Complete Mark 2.00 out of2.00 Question 11 Complete Mark 2.00 out of2.00 Question 12 Complete Mark 0.00 out of2.00 Question 13 Complete Mark 2.00 out of2.00 Question 14 Complete Mark 2.00 out of2.00 Question 15 Complete Mark 2.00 out of2.00 If MC is greater than AC, AC must be decreasing in Q. Therefore, we have economies of scale. Select one: True False Production Quotas encourages the quantity supplied of any good. Select one: True False Suppose the government wants to limit imports of a certain good. Itn this case it is therefore preferable to use an import quota. Select one: True False All government intervention in Perfect Competition cause deadweight loss. Select one: True False Deadweight loss refers to … a. a net loss in total surplus. b. a loss due to policies of labour unions. c. a loss in consumer surplus associated with excess supply of natural gas. d. situations in which market prices fail to capture all of the costs and benefits of a policy. 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 hiscomputer? a. R900 b. R4 400 c. R2 600 d. R3 500 Dashboard / Courses / UNISA / 2023 / Semester 1 / ECS2601-23-S1 / Welcome Message / Assessment 4 Dashboard Calendar ◄ Assessment 3 Jump to... Assessment 5 ► Dashboard / Courses / UNISA / 2023 / Semester 1 / ECS2601-23-S1 / Welcome Message / Assessment 4 Dashboard Calendar Question 1 Not yetanswered Marked out of2.00 Question 2 Not yetanswered Marked out of2.00 In the short run, a perfectly competitive firm earning positive profit is … a. at the minimum of its ATC. b. on the upward sloping portion of its ATC. c. on the downward sloping portion of its ATC. d. above its ATC. Clear my choice If current output is less than the profit-maximising output, then the next unit produced will… a. increase revenue more than it increases cost. b. decrease profit. c. increase revenue without increasing cost. d. increase cost more than it increases revenue. Clear my choice ◄ Assessment 3 Jump to... Assessment 5 ►  Dashboard / Courses / UNISA / 2023 / Semester 1 / ECS2601-23-S1 / Welcome Message / Assessment 4  Dashboard Calendar Question 3 Not yetanswered Marked out of2.00 Question 4 Not yetanswered Marked out of2.00 Which of the following statements is correct regarding the perfectly competitive industry? a. In the long run, firms’ economic profit can take any value. b. Firms will always make positive economic profit in the long run, unlike in the short run. c. A firm making zero economic profit is essentially covering all the opportunity costs of production. d. Due to free entry and exit, the level of production efficiency for a firm is greater in the short run than in the long run. Clear my choice Each point on the long-run average cost curve is a … a. level of average cost that is the lowest possible average cost for that level of output. b. point on the long-run marginal cost curve as well because the long-run average cost curve and long-run marginal cost curve are always identical. c. minimum point on some short-run average cost curve as well. d. cost of production based on a particular input price ratio (Other points on the long-run average cost curve show cost of output with alternative input prices.) Clear my choice ◄ Assessment 3 Jump to... Assessment 5 ►  Dashboard / Courses / UNISA / 2023 / Semester 1 / ECS2601-23-S1 / Welcome Message / Assessment 4  Dashboard Calendar Question 5 Not yetanswered Marked out of2.00 Question 6 Not yetanswered Marked out of2.00 The market supply curves and market demand curves for books are given as follows: Supply curve: P = 0.Q Demand curve: P = 11 – 0.00002Q The short-run marginal cost curve: MC = 0.1 + 0.0009Q Assuming all firms in the market are identical, how many firms are producing books? a. 5 firms b. 500 firms c. Given the information provided, it cannot be determined. d. 50 firms Clear my choice An L-shaped isoquant … a. would indicate that the firm could switch from one output to another costlessly. b. would indicate that the firm could not switch from one output to another. c. would indicate that capital and labour cannot be substituted for each other in production. d. is impossible. Clear my choice ◄ Assessment 3 Jump to... Assessment 5 ►  Dashboard / Courses / UNISA / 2023 / Semester 1 / ECS2601-23-S1 / Welcome Message / Assessment 4  Dashboard Calendar Question 7 Not yetanswered Marked out of2.00 Question 8 Not yetanswered Marked out of2.00 A firm should always produce at an output at which long-run average cost is minimized. Select one: True False Freddy opens his own sneaker shop in a property he owns which cost R5,000 per month to run, but he makes R10,000 a month. Freddy could have worked for a popular retail storefor R2,000 per month, or rented out the store for R1,500 per month. Caculate the economic profit. a. R1500 b. R1300 c. R7000 d. R5000 Clear my choice ◄ Assessment 3 Jump to... Assessment 5 ►  Dashboard / Courses / UNISA / 2023 / Semester 1 / ECS2601-23-S1 / Welcome Message / Assessment 4  Dashboard Calendar Question 9 Not yetanswered Marked out of2.00 Question 10 Not yetanswered Marked out of2.00 A sales tax of R1 per unit of output is placed on a particular firm whose product sells for R5 in a competitive industry with many firms. How will this tax affect the cost curves for the firm? a. all of the options are true. b. Total cost becomes TC + q since the tax rate is t = 1 c. Average cost is now AC + 1. d. Marginal cost becomes MC + 1 Clear my choice If MC is greater than AC, AC must be decreasing in Q. Therefore, we have economies of scale. Select one: True False ◄ Assessment 3 Jump to... Assessment 5 ►  Dashboard / Courses / UNISA / 2023 / Semester 1 / ECS2601-23-S1 / Welcome Message / Assessment 4  Dashboard Calendar Question 11 Not yetanswered Marked out of2.00 Question 12 Not yetanswered Marked out of2.00 Production Quotas encourages the quantity supplied of any good. Select one: True False Suppose the government wants to limit imports of a certain good. Itn this case it is therefore preferable to use an import quota. Select one: True False ◄ Assessment 3 Jump to... Assessment 5 ►  Dashboard / Courses / UNISA / 2023 / Semester 1 / ECS2601-23-S1 / Welcome Message / Assessment 4  Dashboard Calendar Question 13 Not yetanswered Marked out of2.00 Question 14 Not yetanswered Marked out of2.00 All government intervention in Perfect Competition cause deadweight loss. Select one: True False Deadweight loss refers to … a. a net loss in total surplus. b. a loss due to policies of labour unions. c. a loss in consumer surplus associated with excess supply of natural gas. d. situations in which market prices fail to capture all of the costs and benefits of a policy. Clear my choice ◄ Assessment 3 Jump to... Assessment 5 ►  Dashboard / Courses / UNISA / 2023 / Semester 1 / ECS2601-23-S1 / Welcome Message / Assessment 4  Dashboard Calendar