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)   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)

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)    

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

1.1.5 An example of monopolistic competition in South Africa is …. (2)

1.3.4 A financial grant from the government to support the production of a particular product. (1)

1.3.1 A market structure where only two businesses dominate the market. (1)

Column A Column B 1.2.1 Cartel A Aircraft noise. 1.2.2 Explicit cost B Brands play a significant role in determining customer loyalty. 1.2.3 Output C The positive difference between total revenue and total costs. 1.2.4 Shut-down point D The actual expenditure of a business. 1.2.5 Negative externality E Where MC = AVC.   1.2.6 Profit F The number of units produced during a particular time. 1.2.7 Monopolistic competition G The value of inputs that the entrepreneur owns and uses in production. 1.2.8 Economic loss H When a group of producers form a collective monopoly.     I Where MC = MR.     J Average revenue is less than average cost. (8)