Microeconomics Answers

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.

The market for lemon has 10 potential consumers, each having an individual demand curve P = 101 - 10Qi, where P is price in dollars per cup and Qi is the number of cups demanded per week by the ith consumer.

A. Find the market demand curve using algebra.

B. Draw an individual demand curve and the market demand curve

A policy maker deciding how to find as the construction of a new airport he can eat the pay for it by increasing citizens taxes or by printing more money what are some of the short run and long run consequences of each option

what will happen to the equilibrium quantity and equilibrium price of renewable energy resources if energy sector improves the technology

Which one of the following statements is correct? The demand for a product of a perfectly competitive firm.

A.slopes downwards from left to right

B.slopes upwards from left to right

C. Is perfectly elastic

D. Is perfectly inelastic

Question 1

Which one of the following statements is correct? The demand for the product of a perfectly

competitive firm:

A. slopes downward from left to right.

B. slopes upward from left to right.

C. is perfectly elastic.

D. is perfectly inelastic