Answer Happy

QUESTION 13 Colombo Coffee Co is the ultimate coffee shop based in Durban North, has everything a coffee lover would want. First there's the excellent coffee and then there's a range of coffee equipment and beans on sale. The friendly staff are always willing to explain the coffee process to you and offer tours, cuppings, french press, cold brews, and well, any coffee information you require. Assume Colombo Coffee Co: merges with a major coffee beans supplier. Which one of the following is most likely to be an advantage as a result of this merger? A. External economies of scale will increase efficiency B. Greater control to lower prices of coffee C. Industrial diversification increases risks C. Lower monopoly power in the coffee market QUESTION 14 Figure 14.1 shows the market for nursery school places. Figure 14.1 Costs benefits E O MPC-MSC (4 Marks) MSB MPB 0₁ Quantity of nursery school places (4 Marks) Which one of the following measures could a government introduce to achieve the social optimum consumption of nursery school places? It could introduce a: A. maximum price of OP1 per unit B. subsidy of RS per unit C. tax of VT per unit D. minimum price of OP1 per unit