QUESTIONS 14, 15 and 16 are based on Figure 2. Figure 2 20 Price MC AC 0 -Price TUTORIAL LETTER SEMESTER 1/2022 PRINCIPL

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Questions 14 15 And 16 Are Based On Figure 2 Figure 2 20 Price Mc Ac 0 Price Tutorial Letter Semester 1 2022 Principl 1 (87.56 KiB) Viewed 26 times

QUESTIONS 14, 15 and 16 are based on Figure 2. Figure 2 20 Price MC AC 0 -Price TUTORIAL LETTER SEMESTER 1/2022 PRINCIPLES OF MICROECONOMICS PMIS11S 19 D 20 40 60 80 100 120 (i) Which of the following conditions is/are required for price discrimination to accur? Monopoly power. Market segregation. (ii) No resale (iii) (a) 19 (b1 (1). (l) and (1) (i) and only (1) and only (0) only (cl (di (1 mark] QUESTIONS 19 and 20 are based on Figure 3. Figure 3 TUTORIAL LETTER SEMESTER 1/2022 PRINCIPLES OF MICROECONOMICS PMIS118 14. Refer to Figure 2. Given a price of N$8, in the short run the firm will maximise profits when it produces (al 20 units. MC (b) 40 units ATC (c) 60 units (d) 100 units (1 mark) DEAR 15. Refer to Figure 2. The firm's total economic profits in the short run are equal to: : N$90 0 Q, Q. Q. Quantity N$180 ME (b) (c) N$200 19. Refer to Figure 3. The equilibrium output is: (d) zero. (1 mark) (a) 01 (b) az 16. (c) 93 (a) (d) 04 (1 mark) (b) With reference to Figure 2, if the market price is initially N$8, in the long run more firms would enter the industry and all firms in the industry would be able to continue making economic profits greater than zero. na new firms would enter the industry and the long run equilibrium price would be N$8. existing firms would leave the industry and the long run equilibrium price would be more than N$8. more firms would enter the industry and the price would decrease until all forms make normal profits. (1 mark) (c) d) 21 17. {al (6) Which of the following conditions is characteristic of a perfectly competitive market? The seller does not lose all customers when the selling price is raised above the market price. The seller can produce and sell as much as desired at the established market price without affecting that price The seller spends large sumns of money on advertising The seller is affected by the actions of competitors. (1 mark) TUTORIAL LETTER PRINCIPLES OF MICROECONOMICS PMI5115 (c) SEMESTER 1/2022 (d) 20. Refer to Figure 3. The equilibrium price is PI (a) (b P2 (cl P3 20 ( (dl P4 (1 mark) SECTION B Instruction: Please answer each question on a new page.