1.1.6 The effect of a minimum price will increase the …. goods. (2)

Please remember to CamScan your answers for Section B and Section C into a single pdf document. You will need to click submit in this quiz and then the SBA004b Upload Quiz will open automatically.      (Once that quiz is open you get 30 minutes to upload)

1.1.8 In Economics the term short run refers to a period where …. factors of production can change (2)

1.3.6 Something that the public sector will need to do in order to evaluate projects. (1)

QUESTION 3 40 Marks 3.1.1 Give any TWO examples of merit goods. (2) 3.1.2 How can the consumer benefit from competition? (2)     [4] 3.2 Study the graph and answer the questions that follow: RIGHT CLICK ON THE BUTTON TO OPEN THE GRAPH IN A NEW TAB:     3.2.1 Which imperfect market structure is illustrated above? (1) 3.2.2 Name the downward-sloping demand curve above. (1) 3.2.3 Discuss two ways in which collusion may take place in this market. (4) 3.2.4 What would the effect be on total revenue if this producer increased his price from R150 to R155? Show ALL calculations. (4)     [10] 3.3 Study the table and answer the questions that follow: COST AND REVENUE TABLE OUTPUT PRICE AR MR TR AC MC TC 1 21 21 21 21 23 24 23 2 18 18 15 36 19 15 38 3 15 15 9 45 15 7 45 4 12 12 3 48 14 A 56 5 9 9 -3 45 15 19 75   3.3.1 What is the effect on total revenue when marginal revenue is positive? (1) 3.3.2 At which output level will the firm achieve profit maximisation? (1) 3.3.3 Briefly explain the term marginal revenue. (2) 3.3.4 Determine the marginal cost for A in the above table. (2) 3.3.5 Explain why the MR-curve lies below the AR-curve. (4)     [10] 3.4 Draw a well-labelled graph to help in the explanation of economic profit for the monopoly market. (8) 3.5 Draw a well-labelled graph to help in the explanation of a positive externality stemming from consumption. (8)     [40]

1.1.3 Social costs consist of the sum of private and …. costs. (2)

1.1.2 In a perfect market, normal profit is also known as the …. point. (2)

1.3.5 The output increases by more than the percentage increase in inputs which results in a decrease in costs. (1)

    QUESTION 5 MARKET FAILURES     Introduction (2) Body   Discuss the causes of market failure in detail, without the use of any graphs. (26) With the use of a graph, explain how productive efficiency can be achieved in the market. (10) Conclusion (2) [40]   OR       QUESTION 6 MONOPOLY     Introduction (2) Body   Examine the market structure of a monopoly, without the use of any graphs. (26) Why has Eskom, as a monopoly, not achieved economic profit in the long run, as expected of a typical monopoly? (10) Conclusion (2) [40]

1.1.7 A monopoly will maximise its revenue where marginal revenue is …. (2)