Microeconomics Answers

Explain how does the COVID-19 pandemic affect the supply of medical products

Cite three events that would increase the supply of fish in your local market

How do taxes and subsidies determine the level of supply differently?

Explain the difference between individual supply and market supply

define the concept of supply in the context of a public market

2.6 Discuss how a cut in the budget of NSFAS would affect students learning in SA

(20)

2.5. Explain the economic impact of COVID 19 on the South African economy (20)

2.5. Explain the economic impact of COVID 19 on the South African economy (20)

Question 12

Which one of the following statements about a monopoly is true?

A. The monopolist has a flat demand curve because of high barriers to entry.

B. For a monopolistic firm, profit will be maximised where P = MR.

C. In the long run, a monopolist can earn only normal profits.

D. Price in the long run is not usually equal to minimum average total cost.

E. A monopolist will always make economic profit in the long run.

Question 13

If a monopoly market were to be replaced with a perfectly competitive market for the same

product and with the same cost structure, we would expect:

A. prices to increase, output to increase and efficiency to increase.

B. prices to increase, output to decrease and efficiency to decrease.

C. prices to decrease, output to increase and efficiency to increase.

D. prices to decrease, output to decrease and efficiency to decrease.

E. prices to remain unchanged, output to decrease and efficiency to increase.