How often Production and the costs of the firm is asked
Where it was asked
What costs marks here
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The questions
Oct/Nov 2017, QB.212 marks · multiple choice
This is Section B of the ECS1501 October/November 2017 examination, consisting of 35 compulsory multiple-choice items, each worth 2 marks (70 marks in total, 84 minutes allowed). For each item, select the correct option from those listed. Ben makes ice, which he sells to restaurants and petrol stations. He owns just one freezer (his only unit of capital) and employs one worker. When an extreme heat wave strikes, demand for ice rises sharply and Ben must supply more ice. Since he initially cannot afford another freezer, he instead hires two additional workers. Under this scenario, when would the 'long run' be considered to begin for Ben's ice-making business?
Oct/Nov 2017, QB.222 marks · multiple choice
This is Section B of the ECS1501 October/November 2017 examination, consisting of 35 compulsory multiple-choice items, each worth 2 marks (70 marks in total, 84 minutes allowed). For each item, select the correct option from those listed. Mfundo quits his job, where he earned a fixed monthly salary of R8 000, to start his own business. In the first month of the new business, he incurs expenses of R15 000 and earns total revenue of R13 000. What does Mfundo make in this first month?
Oct/Nov 2017, QB.232 marks · multiple choice
This is Section B of the ECS1501 October/November 2017 examination, consisting of 35 compulsory multiple-choice items, each worth 2 marks (70 marks in total, 84 minutes allowed). For each item, select the correct option from those listed. Which of the following statements is NOT true regarding the law of diminishing returns?
Oct/Nov 2017, QB.242 marks · multiple choice
This is Section B of the ECS1501 October/November 2017 examination, consisting of 35 compulsory multiple-choice items, each worth 2 marks (70 marks in total, 84 minutes allowed). For each item, select the correct option from those listed. A baker produces 1 000 loaves of bread per day at an average cost of R2 per loaf. If his total fixed cost is R1 000 per day, what is his total cost?
Oct/Nov 2017, QB.262 marks · multiple choice
This is Section B of the ECS1501 October/November 2017 examination, consisting of 35 compulsory multiple-choice items, each worth 2 marks (70 marks in total, 84 minutes allowed). For each item, select the correct option from those listed. A firm has a total fixed cost of R10 000, a total variable cost of R8 000, and a total revenue of R11 000. What should this firm do in the short run?
May/Jun 2017, Q55 marks
A firm's cost data are given for output levels of 0 to 5 units, with several values left blank for you to calculate (labelled A to E). At 0 units produced, total cost is R1 500, while average fixed cost, average variable cost, average cost and marginal cost are all not applicable (shown as dashes). At 1 unit produced, all cost columns (total fixed cost, total variable cost, total cost, average fixed cost, average variable cost, average cost and marginal cost) are left blank. At 2 units produced, total variable cost is labelled A, total cost is R1 568, and average variable cost is R34. At 3 units produced, total cost is R1 590, average cost is labelled B, and marginal cost is labelled C. At 4 units produced, total fixed cost is labelled D, total cost is labelled E, and marginal cost is R18. At 5 units produced, total variable cost is R123. Using this information, calculate the missing values for A, B, C, D and E.
May/Jun 2017, QB212 marks · multiple choice
This is Section B, the compulsory multiple-choice component of the ECS1501 May/June 2017 exam, consisting of 35 items worth 70 marks in total (2 marks each, since the paper does not print individual marks per item but states the section is compulsory). Jonathan is a plumber who employs two workers and owns some capital, namely a van, tools and other plumbing equipment. What is best defined as the 'long run' for Jonathan's business?
May/Jun 2017, QB222 marks · multiple choice
This is Section B, the compulsory multiple-choice component of the ECS1501 May/June 2017 exam, consisting of 35 items worth 70 marks in total (2 marks each, since the paper does not print individual marks per item but states the section is compulsory). Hannah decides to quit her job, which paid a monthly salary of R22 000, in order to open her own shop. In the first month of trading, Hannah earns a total revenue of R75 000 and incurs a total cost of R52 000. What type of profit or loss did Hannah make in this first month?
May/Jun 2017, QB232 marks · multiple choice
This is Section B, the compulsory multiple-choice component of the ECS1501 May/June 2017 exam, consisting of 35 items worth 70 marks in total (2 marks each, since the paper does not print individual marks per item but states the section is compulsory). Making a particular product requires ten steps. If a firm begins employing labourers to carry out these steps, at which labourer will the law of diminishing returns set in?
May/Jun 2017, QB242 marks · multiple choice
This is Section B, the compulsory multiple-choice component of the ECS1501 May/June 2017 exam, consisting of 35 items worth 70 marks in total (2 marks each, since the paper does not print individual marks per item but states the section is compulsory). Which one of the following cost curves does NOT have a shape that is explained by the law of diminishing marginal returns?
May/Jun 2016, Q421.43 marks · multiple choice
Determine which one of the following statements is correct.
May/Jun 2016, Q431.43 marks · multiple choice
Determine which one of the following statements is correct.
May/Jun 2016, Q441.43 marks · multiple choice
A firm's revenue schedule shows the following: output of 1 unit gives a total revenue of R10; output of 2 units gives an average revenue of R15; output of 3 units gives a marginal revenue of R6; output of 4 units gives an average revenue of R10; output of 5 units gives a total revenue of R42,5; and output of 6 units gives a marginal revenue of R2,5. What is the total revenue of six units?
May/Jun 2016, Q451.43 marks · multiple choice
Using the same revenue schedule (output of 1 unit gives total revenue R10; output of 2 units gives average revenue R15; output of 3 units gives marginal revenue R6; output of 4 units gives average revenue R10; output of 5 units gives total revenue R42,5; output of 6 units gives marginal revenue R2,5), what is the average revenue of three units?
May/Jun 2016, Q461.43 marks · multiple choice
Using the same revenue schedule, what is the marginal revenue of the fifth unit?
May/Jun 2016, Q471.43 marks · multiple choice
Complete the statement: the law of diminishing returns ___.
May/Jun 2016, Q481.43 marks · multiple choice
Refer to a total product (TP) diagram in which total product (in units) is plotted against units of labour (N). The curve shows that 2 units of labour give a total product of 50; 3 units of labour give a total product of 75; 5 units of labour give a total product of 150; 6 units of labour give a total product of 170; and the curve reaches a maximum at around 9 units of labour before it starts to decline. Which one of the following statements is correct?
May/Jun 2016, Q491.43 marks · multiple choice
A labour-production table shows the following: 1 unit of labour gives a marginal product of 20; 2 units of labour give a total product of 45; 3 units of labour give a total product of 66; 4 units of labour give an average product of 21; 5 units of labour give a total product of 100; and 6 units of labour give a marginal product of 14. What is the average product of six units of labour?
May/Jun 2016, Q501.43 marks · multiple choice
Using the same labour-production table, what is the marginal product of the fifth unit of labour?
May/Jun 2016, Q511.43 marks · multiple choice
Refer to a diagram plotting cost per unit of output (MC, AC) against quantity of output (Q). Curve 1 declines to a minimum of 30 at quantity Q1, then rises and intersects curve 2 at a cost of 40 at quantity Q2; curve 2 also passes through this same intersection point at a cost of 40 at Q2. Which one of the following statements is correct?
May/Jun 2016, Q521.43 marks · multiple choice
A beer manufacturer's short-run total cost schedule is as follows: 0 workers per day produce 0 bottles at a total cost of R400; 1 worker produces 30 bottles at R700; 2 workers produce 80 bottles at R1 000; 3 workers produce 120 bottles at R1 300; 4 workers produce 140 bottles at R1 600; and 5 workers produce 150 bottles at R1 900. When output increases from 30 to 80 bottles of beer, what is the marginal cost of producing one of those additional 50 bottles?
May/Jun 2016, Q531.43 marks · multiple choice
Using the same beer manufacturer's cost schedule, what is the average variable cost to the firm when 30 bottles of beer are produced?
May/Jun 2016, Q541.43 marks · multiple choice
Complete the statement: the average fixed cost ___.
May/Jun 2015, Q391.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Determine what a firm's total revenue is equal to.
May/Jun 2015, Q401.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. A table is to be completed showing output (units 1 to 6), total revenue (R), average revenue (R) and marginal revenue (R). The given data points are: at output 1, total revenue = R10; at output 2, average revenue = R15; at output 3, marginal revenue = R6; at output 4, average revenue = R10; at output 5, total revenue = R42,5; at output 6, marginal revenue = R2,5. All other cells must be calculated from these figures. Based on the completed table, determine the total revenue of six units.
May/Jun 2015, Q411.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Using the same output/revenue table (output 1: TR=R10; output 2: AR=R15; output 3: MR=R6; output 4: AR=R10; output 5: TR=R42,5; output 6: MR=R2,5), determine the average revenue of three units.
May/Jun 2015, Q421.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Using the same output/revenue table (output 1: TR=R10; output 2: AR=R15; output 3: MR=R6; output 4: AR=R10; output 5: TR=R42,5; output 6: MR=R2,5), determine the marginal revenue of five units.
May/Jun 2015, Q431.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Determine which one of the following statements about production and cost concepts is correct.
May/Jun 2015, Q441.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Determine which one of the following statements about the law of diminishing returns is correct.
May/Jun 2015, Q451.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. A figure plots marginal product and average product curves against inputs of labour, with the marginal product curve peaking earlier (at Q1) than the average product curve, and the two curves intersecting at Q2, with the marginal product curve becoming negative at Q3. In this figure, variable inputs of labour are being added to a constant amount of property resources. Determine at what level of labour hiring marginal cost will be at a minimum for this firm.
May/Jun 2015, Q461.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Determine the typical shape/behaviour of the average variable cost curve as output changes.
May/Jun 2015, Q471.4286 marks · multiple choice
This is the ECS1501 (Economics IA) May/June 2015 examination, a closed-book, multiple-choice paper lasting 2 hours and worth 100 marks in total. It contains 70 questions that must all be answered on a mark-reading sheet using unique number 492522. The paper states each question carries 1,4 marks, though 70 Ă— 1,4 = 98, not 100; the exact weighting must therefore be 100/70 â‰Ë†1,4286 marks per question to reach the stated total of 100 - a minor internal inconsistency in the printed paper. Determine how the average fixed cost behaves as output changes.
Oct/Nov 2014, Q411.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. In economics, the short run is best described as a period of time in which what condition holds?
Oct/Nov 2014, Q421.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Which of the following statements about a firm's costs of production are true?
Oct/Nov 2014, Q431.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Which of the following statements are NOT true regarding total product (TP), average product (AP) and marginal product (MP)?
Oct/Nov 2014, Q441.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. The table below relates units of labour (N) to total product (TP), average product (AP) and marginal product (MP), with some values missing that must be completed: for N=1, MP=20; for N=2, TP=45; for N=3, TP=66; for N=4, AP=21; for N=5, TP=100; for N=6, MP=14. After completing the table, what is the total product when four units of labour are employed?
Oct/Nov 2014, Q451.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Using the same table of units of labour (N), total product (TP), average product (AP) and marginal product (MP) described above (N=1 MP=20; N=2 TP=45; N=3 TP=66; N=4 AP=21; N=5 TP=100; N=6 MP=14), what is the average product when six units of labour are employed?
Oct/Nov 2014, Q461.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. Using the same table described above, what is the marginal product when five units of labour are employed?
Oct/Nov 2014, Q471.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. The marginal cost curve intersects which of the following cost curves at their minimum points?
Oct/Nov 2014, Q481.4285714285714286 marks · multiple choice
This is the multiple-choice section of the ECS1501 (Economics 1A) October/November 2014 examination, a closed-book, 2-hour paper worth 100 marks in total, for which a non-programmable pocket calculator may be used. The paper consists of 70 multiple-choice questions numbered 1 to 70 that must all be answered on the supplied mark-reading sheet using unique number 495584. The paper states that each question is worth 1,4 marks so that the 70 questions together make up the stated 100 marks (note: 70 × 1,4 = 98, not exactly 100, which appears to be a rounding inconsistency in the original paper). Below, each of the 70 individual multiple-choice items is reproduced, covering topics from basic economic concepts, demand and supply, elasticity, consumer theory, production and costs, market structures (perfect competition, monopoly, monopolistic competition) and labour markets. When the marginal cost (MC) curve is above the average cost (AC) curve, which of the following is true?
The full Spot Map and the marks by year.