2025 – S2 – ECS2601 – ASSESSMENT 3 – Q&A
QUIZ
Assessment 3
Started on Friday, 3 October 2025
State Finished
Completed on Friday, 3 October 2025,
Time taken
Marks 40.00/40.00
Grade 100.00 out of 100.00
Question 1
A natural monopoly exists in an industry with constant returns to scale.
Select one:
➢ True
➢ False
Feedback
The correct answer is 'False'.
Question 2
A monopolist in a glass making market appoints you as a pricing strategist and
wants to know how many glass products should the company produce and what
price should the company charge in order to maximise profit. The demand, marginal
revenue and marginal costs curves of the company are as follows:
Demand: P=10-Q
MR=10-2Q
MC=2.5+0.5Q
What price should the company charge to maximise its profit?
a.
7
b.
8
c.
1
, 2025 – S2 – ECS2601 – ASSESSMENT 3 – Q&A
3
d.
5
Feedback
Your answer is correct.
The correct answer is:
7
Question 3
For a monopolist the market price is affected by their choice of quantity.
Select one:
➢ True
➢ False
Feedback
The correct answer is 'True'.
Question 4
A tuckshop near Unisa offers lunch specials to first-year students. If students
showed their ID cards, they would receive 10% off the cost of their lunch. This
practice is anexample of
a.
bundling
b.
collusion
c.
a two-part tariff
d.
price discrimination
Feedback
The correct answer is: price discrimination
2
QUIZ
Assessment 3
Started on Friday, 3 October 2025
State Finished
Completed on Friday, 3 October 2025,
Time taken
Marks 40.00/40.00
Grade 100.00 out of 100.00
Question 1
A natural monopoly exists in an industry with constant returns to scale.
Select one:
➢ True
➢ False
Feedback
The correct answer is 'False'.
Question 2
A monopolist in a glass making market appoints you as a pricing strategist and
wants to know how many glass products should the company produce and what
price should the company charge in order to maximise profit. The demand, marginal
revenue and marginal costs curves of the company are as follows:
Demand: P=10-Q
MR=10-2Q
MC=2.5+0.5Q
What price should the company charge to maximise its profit?
a.
7
b.
8
c.
1
, 2025 – S2 – ECS2601 – ASSESSMENT 3 – Q&A
3
d.
5
Feedback
Your answer is correct.
The correct answer is:
7
Question 3
For a monopolist the market price is affected by their choice of quantity.
Select one:
➢ True
➢ False
Feedback
The correct answer is 'True'.
Question 4
A tuckshop near Unisa offers lunch specials to first-year students. If students
showed their ID cards, they would receive 10% off the cost of their lunch. This
practice is anexample of
a.
bundling
b.
collusion
c.
a two-part tariff
d.
price discrimination
Feedback
The correct answer is: price discrimination
2
