2025 – S1 – ECS2601 – ASSESSMENT 2 – Q&A
Assessment 2
Started on Monday, 7 April 2025,
State Finished
Completed on Monday, 7 April 2025,
Time taken
Marks 40.00/40.00
Grade 100.00 out of 100.00
Question 1
If a perfectly competitive firm increases production from 10 to 11 units and the
market price is R20 per unit, the total revenue for 11 units would be …
a.
R210.
b.
R20.
c.
R10.
d.
R220.
Feedback
Your answer is correct.
In the case of perfect competition P = AR = MR and thus the average revenue per
unit for 11 units will be R20. TR = AR x Q = R20 x 11 = R220.
The correct answer is:
R220.
Question 2
Which of the following statements regarding a firm that is a price-taker is FALSE?
a.
1
, 2025 – S1 – ECS2601 – ASSESSMENT 2 – Q&A
The firm would not sell anything if it sets its price higher than the market price.
b.
The firm’s demand curve is horizontal but the market demand curve is downward
sloping.
c.
The firm will sell its product at the going market price.
d.
The firm’s demand curve is downward sloping.
Feedback
Your answer is correct.
The firm’s demand curve is downward sloping is FALSE. A price-taker faces a
demand curve, which is horizontal at the market price; this curve shows that the firm
would sell nothing at all if it set a higher price, and would be swamped with orders if
it set a lower price.
The correct answer is:
The firm’s demand curve is downward sloping.
Question 3
Use the table below to answer the following questions:
Output Price Revenue Cost Profit MC MR
0 75 100 - -
1 75 150
2 75 178
3 75 198
4 75 212
5 75 230
2
Assessment 2
Started on Monday, 7 April 2025,
State Finished
Completed on Monday, 7 April 2025,
Time taken
Marks 40.00/40.00
Grade 100.00 out of 100.00
Question 1
If a perfectly competitive firm increases production from 10 to 11 units and the
market price is R20 per unit, the total revenue for 11 units would be …
a.
R210.
b.
R20.
c.
R10.
d.
R220.
Feedback
Your answer is correct.
In the case of perfect competition P = AR = MR and thus the average revenue per
unit for 11 units will be R20. TR = AR x Q = R20 x 11 = R220.
The correct answer is:
R220.
Question 2
Which of the following statements regarding a firm that is a price-taker is FALSE?
a.
1
, 2025 – S1 – ECS2601 – ASSESSMENT 2 – Q&A
The firm would not sell anything if it sets its price higher than the market price.
b.
The firm’s demand curve is horizontal but the market demand curve is downward
sloping.
c.
The firm will sell its product at the going market price.
d.
The firm’s demand curve is downward sloping.
Feedback
Your answer is correct.
The firm’s demand curve is downward sloping is FALSE. A price-taker faces a
demand curve, which is horizontal at the market price; this curve shows that the firm
would sell nothing at all if it set a higher price, and would be swamped with orders if
it set a lower price.
The correct answer is:
The firm’s demand curve is downward sloping.
Question 3
Use the table below to answer the following questions:
Output Price Revenue Cost Profit MC MR
0 75 100 - -
1 75 150
2 75 178
3 75 198
4 75 212
5 75 230
2
