Explain the long-term equilibrium of a firm under perfect competition. (4 x 2) (8)
Explain the goals of the South African competition policy.
(8)
Briefly discuss the number of businesses and the nature of the product as characteristics of
a perfect market structure.
(2 x 4) (8)
Explain, by means of a neatly labelled graph, the relationship between the shut-down point
and the supply curve (MC) of the individual business in the perfect market. (2 x 4) (8)
What are the objectives of the Competition Act, 1998 (Act 89 of 1998) in South Africa?
(4 x 2) (8)
With the aid of a graph, explain why marginal cost must be equal to marginal revenue for
profits to be maximised.
(8)
Draw a clearly labelled graph indicating the shut-down point for the perfect competitor.
Briefly explain why a business will stop producing goods at this point.
(10 marks)
(TOTAL: 126]​