QUESTION 2 40 Marks 2.1.1 Name any TWO institutions in…
QUESTION 2 40 Marks 2.1.1 Name any TWO institutions in South Africa that regulate anti-competitive behaviour. (2) 2.1.2 What will happen if one firm in the perfect market decides to increase its selling price? (2) 2.2 Study the extract and answer the questions that follow: TOLL ROADS – WAS THIS THE BEST DECISION? There are major debates surrounding toll roads in South Africa, with many consumers unhappy and undecided whether it will really benefit the economy. The major question is whether the government has examined all the positives and negatives regarding toll roads. 2.2.1 What method can the government use to ensure that the introduction of toll roads is the best decision? (1) 2.2.2 What will be compared in this method? (1) 2.2.3 Why is the government compelled to use this method? (2) 2.2.4 How can toll roads lead to market failure? (2) 2.2.5 Argue in favour of the implementation of toll roads. (4) 2.3 Study the graph and answer the questions that follow: RIGHT CLICK ON THE BUTTON TO OPEN THE GRAPH IN A NEW TAB: 2.3.1 What is the visible relationship between the MC and AC curves? (2) 2.3.2 Define the term economic loss. (2) 2.3.3 Why is the demand curve of the individual producer perfectly elastic? (2) 2.3.4 Calculate the economic loss. Show ALL calculations. (4) 2.4 Explain how CALTEX can compete in an oligopolistic market with other petrol-selling companies in South Africa. (8) 2.5 What are the effects of the implementation of minimum wages in South Africa? (8)