2025 – S2 – ECS2601 – ASSESSMENT 2 – Q&A
QUIZ
Assessment 2
Started on Tuesday, 16 September 2025,
State Finished
Completed on Tuesday, 16 September 2025,
Time taken
Marks 40.00/40.00
Grade 100.00 out of 100.00
Question 1
If the total cost is R750 and the average fixed cost is R15 when 30 units of output
are produced, then the average variable cost at that level of output is …
a.
R450.
b.
Impossible to determine.
c.
R10.
d.
R15.
Feedback
Your answer is correct.
TFC = AFC x Q = R15 x 30 = R450
TVC = TC – TFC = R750 – R450 = R300
AVC = TVC/Q = R300/30 = R10
Alternatively, you could calculate it as follows:
ATC = TC/Q = R750/30 = R25
AVC = ATC – AFC = R25 – R15 = R10
1
, 2025 – S2 – ECS2601 – ASSESSMENT 2 – Q&A
The correct answer is:
R10.
Question 2
If a perfectly competitive firm increases production from 10 to 12 units and the
market price is R25 per unit, the total revenue for 12 units would be …
a.
R10.
b.
R25.
c.
R300.
d.
R250.
Feedback
Your answer is correct.
In the case of perfect competition P = AR = MR and thus the average revenue per
unit for 12 units will be R25. TR = AR x Q = R25 x 12 = R300.
The correct answer is:
R300.
Question 3
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 increasing, constant, and decreasing returns in that order.
b.
The short-run average cost curve reveals nothing regarding returns to scale.
2
QUIZ
Assessment 2
Started on Tuesday, 16 September 2025,
State Finished
Completed on Tuesday, 16 September 2025,
Time taken
Marks 40.00/40.00
Grade 100.00 out of 100.00
Question 1
If the total cost is R750 and the average fixed cost is R15 when 30 units of output
are produced, then the average variable cost at that level of output is …
a.
R450.
b.
Impossible to determine.
c.
R10.
d.
R15.
Feedback
Your answer is correct.
TFC = AFC x Q = R15 x 30 = R450
TVC = TC – TFC = R750 – R450 = R300
AVC = TVC/Q = R300/30 = R10
Alternatively, you could calculate it as follows:
ATC = TC/Q = R750/30 = R25
AVC = ATC – AFC = R25 – R15 = R10
1
, 2025 – S2 – ECS2601 – ASSESSMENT 2 – Q&A
The correct answer is:
R10.
Question 2
If a perfectly competitive firm increases production from 10 to 12 units and the
market price is R25 per unit, the total revenue for 12 units would be …
a.
R10.
b.
R25.
c.
R300.
d.
R250.
Feedback
Your answer is correct.
In the case of perfect competition P = AR = MR and thus the average revenue per
unit for 12 units will be R25. TR = AR x Q = R25 x 12 = R300.
The correct answer is:
R300.
Question 3
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 increasing, constant, and decreasing returns in that order.
b.
The short-run average cost curve reveals nothing regarding returns to scale.
2
