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Assume a monopolistic publisher agreed to pay an author 10% of the total revenue from the sale of
the text. Will the author and the publisher want to charge the same price for the text? Explain in
the light of price discrimination?
an increase in supply...
“If education is provided free of charge to (some or all) students, someone else has to foot the bill.
In most cases, this would be the government and thus, by implication, the taxpayer. In the
2018/2019 budget of the South African government, the additional allocation to subsidise higher
education and training fully for poor and working-class students amounted to R12.4 billion. In 2019
and 2020, it is estimated it will amount to R20.3 billion and R24.3 billion, respectively.”
(4 marks)
Assuming that education and healthcare are the only expenditure items on the governments budget (and are
represented by a production possibilities curve), the increase of the above above subsidy represents…
a) A movement along the production possibilities frontier.
b) A movement towards the production possibilities frontier
c) An outward movement of the production possibilities frontier
d) An inward movement of the production possibilities frontier
small farmer is more likely to operate in a perfectly competitive market than a company like AB inBev because...
a) a small business is more likely to keep close control on costs than a large firm.
b) AB inBev employs many people, whereas perfectly competitive firms are owner-managed.
c) the demand for beer is less elastic than the demand for food.
d) a small farmer supplies a small share of market supply.
n a perfectly competitive market for widgets, the market price is R15. Use the cost information for a firm producing widgets in this market given in the table below and answer the question that follows.
A small farmer is more likely to operate in a perfectly competitive market than a company like AB
inBev because...
When the price of commodity B rises by 10%, the total revenue received by firms that sell commodity B rises by 5%. The demand for commodity B is therefore...
An increase in supply...
a) indicates that more is supplied at higher prices.
b) indicates that more is supplied at lower prices.
c) indicates that more is supplied at all prices.
d) is illustrated by an upward shift of the supply curve
When the price of commodity B rises by 10%, the total revenue received by firms that sell
commodity B rises by 5%. The demand for commodity B is therefore...
a) perfectly elastic.
b) unitary elastic
c) inelastic
d) elastic
A small farmer is more likely to operate in a perfectly competitive market than a company like AB inBev because...
