ECS1500
ECS1500 ASSIGNMENT 1 SOLUTIONS
SEMESTER 2 2020
ECS1500
ASSIGNMENT 3
SOLUTIONS
SEMESTER 2 2020
, Assignment 03 (second semester)
UNIQUE NUMBER : 784584
ASSIGNMENT 03 (SECOND SEMESTER)
3.1 A natural monopoly is created by government when only one supplier can supply the whole market.
[1] True
[2] False
Explanation: A natural monopoly is a type of monopoly that exists due to the high start-up costs or
powerful economies of scale of conducting a business in a specific industry. A company with a natural
monopoly might be the only provider or a product or service in an industry or geographic location
3.2 Local authorities generate their own revenue and do not form part of government in South Africa.
[1] True
[2] False
Explanation: A local authority is an organization that is officially responsible for all the public services
and facilities in a particular area. Local government is responsible for a range of vital services for people
and businesses in defined areas. Among them are well known functions such as social care, schools,
housing and planning and waste collection, but also lesser known ones such as licensing, business
support, registrar services and pest control.
2
ECS1500 ASSIGNMENT 1 SOLUTIONS
SEMESTER 2 2020
ECS1500
ASSIGNMENT 3
SOLUTIONS
SEMESTER 2 2020
, Assignment 03 (second semester)
UNIQUE NUMBER : 784584
ASSIGNMENT 03 (SECOND SEMESTER)
3.1 A natural monopoly is created by government when only one supplier can supply the whole market.
[1] True
[2] False
Explanation: A natural monopoly is a type of monopoly that exists due to the high start-up costs or
powerful economies of scale of conducting a business in a specific industry. A company with a natural
monopoly might be the only provider or a product or service in an industry or geographic location
3.2 Local authorities generate their own revenue and do not form part of government in South Africa.
[1] True
[2] False
Explanation: A local authority is an organization that is officially responsible for all the public services
and facilities in a particular area. Local government is responsible for a range of vital services for people
and businesses in defined areas. Among them are well known functions such as social care, schools,
housing and planning and waste collection, but also lesser known ones such as licensing, business
support, registrar services and pest control.
2
