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Summary ecs1501 assessment 10
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5/31/23, 1:16 PM Assessment 10: Attempt reviewMENU
Dashboard / My courses / ECS1501-23-S1 / Assessments / Assessment 10
Started on Monday, 29 May 2023, 11:38 AM
State Finished
Completed on Wednesday, 31 May 2023, 1:16 PM
Time taken 2 days 1 hour
Marks 17.00/20.00
Grade 85.00 out of 100.00
Question 1
Complete
Not graded
I confirm
that this assessment will be my own individual work;
that I will not communicate with anyone else in any way during the completion of this assessment;
that I will not cheat in any way in completing and submitting this assessment.
I confirm.
I do not confirm.
Alt+Q
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=11023176&cmid=604697 1/13
, 5/31/23, 1:16 PM Assessment 10: Attempt review
Question 2
Complete
Mark 1.00 out of 1.00
MENU
In a perfectly competitive industry, the market price is R20. An individual firm produces output at which MC = R25. What should the firm do
Dashboard
to / My courses
maximise profits / ECS1501-23-S1
or to minimise losses in the/ short
Assessments
run? / Assessment 10
they should leave the output unchanged.
they should decrease production.
they should increase production.
they should shut down.
In a perfect competitive market P = AR = MR, as depicted by a horizontal demand curve at the given market price (R20). In the question, the
MC > MR or R25 > R20, which means firms are producing at a loss in the short run and thus need to decrease production to reach again the
profit-maximising level of output where MR = MC.
Question 3
Complete
Mark 1.00 out of 1.00
Which of the following is not a characteristic of perfect competition in the short run?
All buyers and sellers have perfect knowledge of market conditions.
The equilibrium level of output occurs where marginal cost equals marginal revenue.
All firms are price takers.
All firms produce where average costs are minimised.
All perfectly competitive firms are price takers and maximise profits where MR = MC. They also operate in markets where there is perfect
information. In the short run, however, they do not all produce at minimum average costs.
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https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=11023176&cmid=604697 2/13
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