ECS2601 ASSIGNMENT 2 FOR 1ST SEM 2025

ECS2601 ASSIGNMENT 2
FOR SEMESTER 1 2025




FEND TUTORIALS

, Question 1
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Question text
A small city has a number of hot dog stands operating throughout the CBD area. Suppose that each
vendor has a marginal cost of R1,50 per hot dog sold and no fixed cost. Suppose the maximum
number of hot dogs that any one vendor can sell is 100 per day.
If each vendor sells the maximum 100 hotdogs per day and demand for hot dogs is given as Q(d) =
4400 – 1200P, what is the total number of vendors in the market in the short run?


a.
10 vendors.


b.
2 vendors.


c.
15 vendors.


d.
20 vendors.

Clear my choice

Question 2
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When a profit-maximising firm is at its short run optimum,


a.
the firm will be shut down if its price is less than the average fixed cost.


b.
the profit per unit of output will be at its maximum possible level.


c.
none of the options will be true.