2025 – ECS1501 – ASSESSMENT 6 – Q&A
QUIZ
Assessment 6
Started on Sunday, 21 September 2025
State Finished
Completed Sunday, 21 September 2025,
on
Time taken
Marks 40.00/40.00
Grade 100.00 out of 100.00
Feedback Excellent work! You seem to understand the content of Topics
14 and 15. Please read the feedback for each question
carefully and ensure you agree with the explanations provided.
Note that
• you are allowed to submit two attempts for this
assessment. If you take two attempts, the average mark
of the two will contribute towards your final credits.
• you must wait 24 hours before you can attempt the
assessment again.
Question 1
I confirm
that this assessment will be my own individual work;
that I will not cheat in any way in completing and submitting this assessment.
o I confirm.
o I do not confirm.
Question 2
1
, 2025 – ECS1501 – ASSESSMENT 6 – Q&A
A perfectly competitive firm is currently producing an output level where price is R6,
average variable cost is R4, average cost is R5,55 and marginal cost is R7. In order
to maximise profits, this firm should decrease output.
o True
o False
Feedback
The statement is true.
In a perfectly competitive market, a firm maximizes its profits by producing at the
level of output where marginal cost (MC) equals marginal revenue (MR).
In the given scenario, the marginal cost (MC) of producing the next unit is R7, while
the price (which is also the marginal revenue, MR) is R6. Since MR (R6) is less than
MC (R7), producing the additional unit would result in a loss for the firm. Therefore,
to maximize profits, the firm should decrease its output and produce at a level where
MR equals MC.
Question 3
A monopoly is a market structure with only one buyer and many sellers.
o True
o False
Feedback
The statement is false.
A monopoly is a market structure with only one seller or producer and many buyers
or consumers. In a monopoly, there is a lack of competition as the monopolist has
exclusive control over the market. This allows the monopolist to have significant
influence over prices, quantities, and market outcomes.
Incidentally, a market structure with only one buyer and many sellers is known as a
monopsony.
2
QUIZ
Assessment 6
Started on Sunday, 21 September 2025
State Finished
Completed Sunday, 21 September 2025,
on
Time taken
Marks 40.00/40.00
Grade 100.00 out of 100.00
Feedback Excellent work! You seem to understand the content of Topics
14 and 15. Please read the feedback for each question
carefully and ensure you agree with the explanations provided.
Note that
• you are allowed to submit two attempts for this
assessment. If you take two attempts, the average mark
of the two will contribute towards your final credits.
• you must wait 24 hours before you can attempt the
assessment again.
Question 1
I confirm
that this assessment will be my own individual work;
that I will not cheat in any way in completing and submitting this assessment.
o I confirm.
o I do not confirm.
Question 2
1
, 2025 – ECS1501 – ASSESSMENT 6 – Q&A
A perfectly competitive firm is currently producing an output level where price is R6,
average variable cost is R4, average cost is R5,55 and marginal cost is R7. In order
to maximise profits, this firm should decrease output.
o True
o False
Feedback
The statement is true.
In a perfectly competitive market, a firm maximizes its profits by producing at the
level of output where marginal cost (MC) equals marginal revenue (MR).
In the given scenario, the marginal cost (MC) of producing the next unit is R7, while
the price (which is also the marginal revenue, MR) is R6. Since MR (R6) is less than
MC (R7), producing the additional unit would result in a loss for the firm. Therefore,
to maximize profits, the firm should decrease its output and produce at a level where
MR equals MC.
Question 3
A monopoly is a market structure with only one buyer and many sellers.
o True
o False
Feedback
The statement is false.
A monopoly is a market structure with only one seller or producer and many buyers
or consumers. In a monopoly, there is a lack of competition as the monopolist has
exclusive control over the market. This allows the monopolist to have significant
influence over prices, quantities, and market outcomes.
Incidentally, a market structure with only one buyer and many sellers is known as a
monopsony.
2
