2024 – S1 – ECS2601 – ASSESSEMENT 4 – Q&A
Assessment 4
Started on Wednesday, 24 April 2024,
State Finished
Completed on Wednesday, 24 April 2024,
Time taken 1 hour 16 mins
Marks 30.00/30.00
Grade 100.00 out of 100.00
Question 1
A firm producing seven units of output has an average total cost of R150 and has to
pay R350 to its fixed factors of production. The average variable cost is …
a.
R100.
b.
R300.
c.
R50.
d.
R200.
Feedback
The correct answer is:
R100.
Question 2
James knows the average total cost and the average variable cost for a given level
of output. Which of the following costs can he not determine given this information?
a.
average fixed cost
b.
James can determine all of the above costs given the information provided.
1
, 2024 – S1 – ECS2601 – ASSESSEMENT 4 – Q&A
c.
fixed cost
d.
total cost
Feedback
The correct answer is:
James can determine all of the above costs given the information provided.
Question 3
The market supply curves and market demand curves for books are given as follows:
Supply curve: P = 0.000002Q Demand curve: P = 11 – 0.00002Q
The short-run marginal cost curve: MC = 0.1 + 0.0009Q
The equilibrium price of books is …
a.
R1
b.
R100
c.
R5
d.
R50
Feedback
The correct answer is:
R1
Question 4
In a perfectly competitive industry, the amount of output that a firm decides to sell
has no effect on the market price, because…
a.
2
Assessment 4
Started on Wednesday, 24 April 2024,
State Finished
Completed on Wednesday, 24 April 2024,
Time taken 1 hour 16 mins
Marks 30.00/30.00
Grade 100.00 out of 100.00
Question 1
A firm producing seven units of output has an average total cost of R150 and has to
pay R350 to its fixed factors of production. The average variable cost is …
a.
R100.
b.
R300.
c.
R50.
d.
R200.
Feedback
The correct answer is:
R100.
Question 2
James knows the average total cost and the average variable cost for a given level
of output. Which of the following costs can he not determine given this information?
a.
average fixed cost
b.
James can determine all of the above costs given the information provided.
1
, 2024 – S1 – ECS2601 – ASSESSEMENT 4 – Q&A
c.
fixed cost
d.
total cost
Feedback
The correct answer is:
James can determine all of the above costs given the information provided.
Question 3
The market supply curves and market demand curves for books are given as follows:
Supply curve: P = 0.000002Q Demand curve: P = 11 – 0.00002Q
The short-run marginal cost curve: MC = 0.1 + 0.0009Q
The equilibrium price of books is …
a.
R1
b.
R100
c.
R5
d.
R50
Feedback
The correct answer is:
R1
Question 4
In a perfectly competitive industry, the amount of output that a firm decides to sell
has no effect on the market price, because…
a.
2
