Assessment 5_ Attempt review

Question 1 Complete Mark 2.00 out of 2.00 Question 2 Complete Mark 0.00 out of 3.00 Question 3 Complete Mark 2.00 out of 2.00 Started on Friday, 2 June 2023, 8:39 PM State Finished Completed on Friday, 2 June 2023, 9:49 PM Time taken 1 hour 9 mins Marks 19.00/40.00 Grade 47.50 out of 100.00 Price discrimination based on the quantity consumed is referred to as … price discrimination. a. first-degree b. group c. second-degree d. third-degree Consider the following functions faced by a monopolist: Demand: P=20-2Q MR=20-4Q MC=5+Q At which level of output is profit being maximised? a. 10 b. 3 c. 5 d. 2 A social cost imposed by a monopolist as a result of reducing output. a. Deadweight loss. b. Marginal cost. c. A higher producer surplus. d. A higher price.  Dashboard / My courses / ECS2601-23-S1 / Welcome Message / Assessment 5  Dashboard Calendar

Question 4 Complete Mark 0.00 out of 3.00 Question 5 Complete Mark 0.00 out of 2.00 Question 6 Complete Mark 2.00 out of 2.00 Question 7 Complete Mark 0.00 out of 2.00 Use the following graph to answer the question. The maximum rent seeking is represented by ... a. B + D b. D + B + C + E c. None of the options is correct. d. A + B + C + D + E Which of the following is/are TRUE regarding the average revenue? a. AR(Q) = D b. All of the options are true. c. AR(Q) > MR(Q) d. AR(Q) = P(Q) Which of the following is true for a Stackelberg model? a. Both firms produce the same quantity. b. The first firm produces more than its rival. c. The first firm produces less than its rival. d. Both firms have a reaction curve Which of the following is correct about a firm operating in a monopolistically competitive market? a. The firm has excess capacity. b. The firm has a perfectly elastic demand. c. Advertising and product quality improve firm profits. d. The firm has marginal pricing.  Dashboard / My courses / ECS2601-23-S1 / Welcome Message / Assessment 5 Dashboard Calendar

Question 13 Complete Mark 0.00 out of 2.00 Question 14 Complete Mark 3.00 out of 3.00 Question 15 Complete Mark 0.00 out of 2.00 Question 16 Complete Mark 0.00 out of 2.00 Question 17 Complete Mark 2.00 out of 2.00 Question 18 Complete Mark 0.00 out of 2.00 If a firm is producing where its short-run marginal cost (SMC) = price and the long-run marginal cost (LMC) is less than long-run average cost (LAC), then it would do better in the long run by … a. decreasing plant size until LAC, short-run average cost (SAC) and price are equal. b. doing nothing because it is already at the long-run profit maximising point. c. increasing plant size until LMC and SMC are identical and equal to price. d. increasing output with its existing plant until LMC equals price. A firm faces the following average revenue (demand) curve: P = 120 – 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm’s cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits. What is the level of production? a. 6000 b. 3000 c. 750 d. 1500 Which one of the following is NOT an example of price discrimination? a. “Buy two, get one free” pizza promotions at Little Italy Pizzeria. b. The lower cost structure of South African Airlines, which allows it to sell cheaper airline tickets. c. The local country club offering lower rates to beginners. d. Cheaper electricity during off-peak periods. Which of the following curves will coincide on the graph for a monopolist or monopolistic competitor? a. Only the average revenue and marginal revenue curves will coincide. b. The demand, average revenue and marginal revenue curves will coincide. c. Only the demand and marginal revenue curves will coincide. d. Only the demand and average revenue curves will coincide. A monopolist choose a price to charge in order to maximise profits, given that price depends on qunatity. Select one: True False Rent seeking involves which of the following activities? a. All of the options are correct. b. Bribery c. Advertising d. Hiring thugs.  Dashboard / My courses / ECS2601-23-S1 / Welcome Message / Assessment 5 Dashboard Calendar

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