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ECS2601 ASSIGNMENT 2 FOR 2025 - DUE 16 SEPTEMBER 2025

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ECS2601 ASSIGNMENT 2 FOR 2025 - DUE 16 SEPTEMBER 2

Institution
University Of South Africa (Unisa)
Course
Intermediate Microeconomics (ECS2601)









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Institution
University of South Africa (Unisa)
Course
Intermediate Microeconomics (ECS2601)
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Uploaded on
August 25, 2025
Number of pages
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Written in
2025/2026
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ECS2601 ASSIGNMENT 2




STUDENT NUMBER:
10912762
DUE: 29 August 2025

, Question 1
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Question text
A firmʹs short-run average cost curve is U-shaped. Which of these conclusions can be reached
regarding the firmʹs returns to scale?

a.
The firm experiences first decreasing, then increasing returns to scale.


b.
The firm experiences increasing, constant, and decreasing returns in that order.


c.
The short-run average cost curve reveals nothing regarding returns to scale.


d.
The firm experiences increasing returns to scale.


Question 2
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Thabang is willing to pay R20 for essay editing, and Tshego is willing to edit essays for R10. The
perfect competitive market price for editting is R14. Calcuate total surplus.




a.
R5


b.
R10


c.
R11


d.
R9
$3.04
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