ECS2601-24-S1 Welcome Message Assessment 4
QUIZ
Started on Wednesday, 24 April
2024, 1:44 PM
State Finished
Completed on Wednesday, 24 April
2024, 2:05 PM
Time taken
Marks
out of 100.00
Question 1
Complete
Mark 2.00 out of 2.00
0 1 0
The market supply curves and market
demand curves for books are given as
follows:
Supply curve: P = 0.000002Q Demand
curve: P = 11 – 0.00002Q
The short-run marginal cost curve: MC =
0.1 + 0.0009Q
Assuming all �rms in the market are
identical, how many �rms are producing
books?
a. Given the information provided, it
cannot be determined.
b. 500 �rms
c. 5 �rms
d. 50 �rms
1 of 7 2024/04/24, 14
,Assessment 4: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=181
Question 2
Complete
Mark 2.00 out of 2.00
The market supply curves and market
demand curves for books are given as
follows:
Supply curve: P = 0.000002Q Demand
curve: P = 11 – 0.00002Q
The short-run marginal cost curve: MC =
0.1 + 0.0009Q
At the short-run equilibrium level, the �rm
is …
a. making zero economic pro�t
b. making a loss of R1 000 000
c. making a pro�t of R1 000 000
d. given the information provided, it
cannot be determined.
Question 3
Complete
Mark 0.00 out of 2.00
A �rm producing �ve units of output has
an average total cost of R100 and has to
pay R250 to its �xed factors of production.
The average variable cost is …
a. R50
b. R250
c. R100
d. R200
2 of 7 2024/04/24, 14
,Assessment 4: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=181
Question 4
Complete
Mark 0.00 out of 2.00
In what instance would a perfectly
competitive industry have a long-run
supply curve that slopes downwards?
a. The perfectly competitive industry
will never have a long-run supply
curve that slopes downwards.
b. When the perfectly competitive
industry has decreasing costs.
c. When the perfectly competitive
industry has increasing costs.
d. When the perfectly competitive
industry has constant costs.
Question 5
Complete
Mark 2.00 out of 2.00
If current output is less than the pro�t-
maximising output, then the next unit
produced will…
a. increase revenue more than it
increases cost.
b. increase revenue without
increasing cost.
c. decrease pro�t.
d. increase cost more than it
increases revenue.
3 of 7 2024/04/24, 14
,Assessment 4: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=181
Question 6
Complete
Mark 2.00 out of 2.00
A perfect competitor found that it could
produce a maximum output of 100 units
each day, which it can sell at the market
price or AR of R100, but even at this rate, it
would make a loss. Considering this
information, under what circumstances
would it de�nitely make a smaller loss if it
shut down and produced nothing?
a. At an output level of 100 units a
day, its short-run marginal cost
(SMC) would be above R100.
b. At an output level of 100 units a
day, its average variable cost
(AVC) would be above R100.
c. At an output level of 100 units a
day, its average �xed cost (AFC)
would be above R100.
d. At an output level of 100 units a
day, its short-run average cost
(SAC) would be above R100.
Question 7
Complete
Mark 2.00 out of 2.00
In an unregulated, competitive market,
producer surplus exists because some ...
a. consumers are willing to pay
more than the equilibrium price.
b. consumers are willing to
purchase, but only at prices below
the equilibrium price.
c. producers are willing to take more
than the equilibrium price.
d. producers are willing to sell at
less than the equilibrium price.
4 of 7 2024/04/24, 14