PASSMATE TUTORIALS
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE FRAMEWORK
IS NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A
POSSIBLE SOLUTION TO THE TASK CONSISTENT WITH THEORY. THIS
FRAMEWORK IS ONLY INTENDED TO ASSIST STUDENTS IN GETTING STARTED
WITH THEIR ASSIGNMENT, AND IN NO CASE THIS DOCUMENT SHOULD BE USED
FOR CHEATING, THUS NO STUDENT IS ENCOURAGED TO COPY THIS
DOCUMENT, NOR ITS SECTIONS FOR SUBMISSION. WE BELIEVE THE
FRAMEWORK WILL BE A GOOD STARTING POINT AS IT WAS PREPARED BY OUR
TEAM OF PROFESSIONAL PRIVATE TUTORS WHO ARE EXPERTS IN THE FIELD,
AND IT WAS PREPARED USING VARIOUS SOURCES. ANY SIMILARITY WITH ANY
EXISTING THEORY OR DISCUSSION BY OTHER AUTHORS IS EXCUSED. THE
AUTHORS HOWEVER DO NOT CLAIM MONOPOLY TO KNOWLEDGE HENCE
MODIFICATION OF THE ANSWERS CONTAINED IN THIS FRAMEWORK MAY NOT
BE PROHIBITED AS IT CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY
FURTHER GUIDELINE ABOUT THE INFORMATION CONTAINED HERE AND THE
MODULE IN GENERAL, CONTACT PASSMATE TUTORIALS.
WE ASSIST WITH OTHER MODULES INCLUDING:
ECSs, FACs, MACs, MNGs, INTs, TRLs, HMEMS, PRMs, PROs, MNBs, DSC, QMI,
MNMs, MNO, MNPs, FIN, PUBs, MNMs, RESEARCH among others.
WE OFFER CLASSES, ASSIGNMENT GUIDELINES, EXAMINATION PREPARATION,
RESEARCH AND RESEARCH PROPOSALS, DISSERTATION EDITING etc.
OTHER THAN UNISA, WE ALSO ASSIST STUDENTS AT VARIOUS INSTITUTIONS
INCLUDING MANCOSA, REGENT, REGEYNESES, BOSTON, STADIO, OLG, UJ, UP
etc
For any enquiries the following numbers can be used for calling, sms, whatsapp and
telegram
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 OR
email
,PASSMATE TUTORIALS
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 OR
email
PASSMATE TUTORIALS 061 262 1185/068 053 8213/0717 513 144
,PASSMATE TUTORIALS
Price ceilings are only effective if the black market is prevented.
Select one:
True
False
Question text
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. 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.
c. Firms will always make positive economic profit in the long run, unlike in the short run.
d. A firm making zero economic profit is essentially covering all the opportunity costs of
production.
Read the following excerpt from Business Tech below and consider the Profit Payoff
matrix to answer the question that follow:
Competition Commission charges Wesbank and Toyota for collusion
“The Competition Commission has referred motor vehicle finance groups FirstRand Bank,
Wesbank, and Toyota Financial Services South Africa Limited (TFS) to the Competition
Tribunal for prosecution on allegations of dividing the market by allocating customers or
suppliers.
The Commission’s investigation revealed that Wesbank and TFS entered into an
agreement to divide markets by allocating customers or suppliers in the market for the
provision of vehicle finance in contravention of section 4(1)(b)(ii) of the Competition Act.
The motor vehicle finance market includes offering vehicle finance, leases, and
dealerships financing.
“FirstRand Bank Limited (FirstRand), through its WesBank division, and TFS are involved in
the provision of vehicle finance services. They are therefore supposed to compete. They,
however, concluded a shareholder agreement which contains clauses that prevent them
from competing,” the commission said.”
PASSMATE TUTORIALS 061 262 1185/068 053 8213/0717 513 144
, PASSMATE TUTORIALS
Assume that the competition commission has not found out about the collusion of
Toyota and Wesbank and no charges currently exist. Does the possibility of one company
cheating exist, if so why?
a. No, because there is no incentive to cheat in this instance since profits will always
remain low when Toyota or Wesbank operates individually.
b. No, because a company stand to gain more by providing vehicle finance at the collusion
level and not at the cournot level.
c. Yes, because a company stand to gain more by providing vehicle finance at the cournot
level and not at the collusion level.
d. It is impossible to say since more information is needed.
Question text
A firm 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 firm’s
cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits.
What is the level of Profit?
a. 20 000 cents per week.
b. 8 750 cents per week.
c. 377 800 cents per week.
d. 25 000 cents per week.
A firm producing five units of output has an average total cost of R100 and has to pay R250 to
its fixed factors of production. The average variable cost is …
a. R100
b. R200
c. R250***
d. R50 *****
PASSMATE TUTORIALS 061 262 1185/068 053 8213/0717 513 144
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE FRAMEWORK
IS NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A
POSSIBLE SOLUTION TO THE TASK CONSISTENT WITH THEORY. THIS
FRAMEWORK IS ONLY INTENDED TO ASSIST STUDENTS IN GETTING STARTED
WITH THEIR ASSIGNMENT, AND IN NO CASE THIS DOCUMENT SHOULD BE USED
FOR CHEATING, THUS NO STUDENT IS ENCOURAGED TO COPY THIS
DOCUMENT, NOR ITS SECTIONS FOR SUBMISSION. WE BELIEVE THE
FRAMEWORK WILL BE A GOOD STARTING POINT AS IT WAS PREPARED BY OUR
TEAM OF PROFESSIONAL PRIVATE TUTORS WHO ARE EXPERTS IN THE FIELD,
AND IT WAS PREPARED USING VARIOUS SOURCES. ANY SIMILARITY WITH ANY
EXISTING THEORY OR DISCUSSION BY OTHER AUTHORS IS EXCUSED. THE
AUTHORS HOWEVER DO NOT CLAIM MONOPOLY TO KNOWLEDGE HENCE
MODIFICATION OF THE ANSWERS CONTAINED IN THIS FRAMEWORK MAY NOT
BE PROHIBITED AS IT CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY
FURTHER GUIDELINE ABOUT THE INFORMATION CONTAINED HERE AND THE
MODULE IN GENERAL, CONTACT PASSMATE TUTORIALS.
WE ASSIST WITH OTHER MODULES INCLUDING:
ECSs, FACs, MACs, MNGs, INTs, TRLs, HMEMS, PRMs, PROs, MNBs, DSC, QMI,
MNMs, MNO, MNPs, FIN, PUBs, MNMs, RESEARCH among others.
WE OFFER CLASSES, ASSIGNMENT GUIDELINES, EXAMINATION PREPARATION,
RESEARCH AND RESEARCH PROPOSALS, DISSERTATION EDITING etc.
OTHER THAN UNISA, WE ALSO ASSIST STUDENTS AT VARIOUS INSTITUTIONS
INCLUDING MANCOSA, REGENT, REGEYNESES, BOSTON, STADIO, OLG, UJ, UP
etc
For any enquiries the following numbers can be used for calling, sms, whatsapp and
telegram
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 OR
,PASSMATE TUTORIALS
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 OR
PASSMATE TUTORIALS 061 262 1185/068 053 8213/0717 513 144
,PASSMATE TUTORIALS
Price ceilings are only effective if the black market is prevented.
Select one:
True
False
Question text
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. 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.
c. Firms will always make positive economic profit in the long run, unlike in the short run.
d. A firm making zero economic profit is essentially covering all the opportunity costs of
production.
Read the following excerpt from Business Tech below and consider the Profit Payoff
matrix to answer the question that follow:
Competition Commission charges Wesbank and Toyota for collusion
“The Competition Commission has referred motor vehicle finance groups FirstRand Bank,
Wesbank, and Toyota Financial Services South Africa Limited (TFS) to the Competition
Tribunal for prosecution on allegations of dividing the market by allocating customers or
suppliers.
The Commission’s investigation revealed that Wesbank and TFS entered into an
agreement to divide markets by allocating customers or suppliers in the market for the
provision of vehicle finance in contravention of section 4(1)(b)(ii) of the Competition Act.
The motor vehicle finance market includes offering vehicle finance, leases, and
dealerships financing.
“FirstRand Bank Limited (FirstRand), through its WesBank division, and TFS are involved in
the provision of vehicle finance services. They are therefore supposed to compete. They,
however, concluded a shareholder agreement which contains clauses that prevent them
from competing,” the commission said.”
PASSMATE TUTORIALS 061 262 1185/068 053 8213/0717 513 144
, PASSMATE TUTORIALS
Assume that the competition commission has not found out about the collusion of
Toyota and Wesbank and no charges currently exist. Does the possibility of one company
cheating exist, if so why?
a. No, because there is no incentive to cheat in this instance since profits will always
remain low when Toyota or Wesbank operates individually.
b. No, because a company stand to gain more by providing vehicle finance at the collusion
level and not at the cournot level.
c. Yes, because a company stand to gain more by providing vehicle finance at the cournot
level and not at the collusion level.
d. It is impossible to say since more information is needed.
Question text
A firm 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 firm’s
cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits.
What is the level of Profit?
a. 20 000 cents per week.
b. 8 750 cents per week.
c. 377 800 cents per week.
d. 25 000 cents per week.
A firm producing five units of output has an average total cost of R100 and has to pay R250 to
its fixed factors of production. The average variable cost is …
a. R100
b. R200
c. R250***
d. R50 *****
PASSMATE TUTORIALS 061 262 1185/068 053 8213/0717 513 144
