ECS4862/101/0/2019
Tutorial letter 101/0/2019
Advanced Microeconomics
ECS4862
Year Module
Department of Economics
IMPORTANT INFORMATION:
This tutorial letter contains important information
about your module.
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CONTENTS
Page
1
INTRODUCTION .......................................................................................................................... 3
2
PURPOSE OF AND OUTCOMES FOR THE MODULE............................................................... 4
2.1
Purpose ........................................................................................................................................ 4
2.2
Outcomes ..................................................................................................................................... 4
3
LECTURER(S) AND CONTACT DETAILS................................................................................... 4
3.1
Lecturer(s) .................................................................................................................................... 4
3.2
Department ................................................................................................................................... 4
3.3
University ...................................................................................................................................... 4
4
MODULE-RELATED RESOURCES ............................................................................................. 5
4.1
Prescribed books .......................................................................................................................... 5
4.2
Recommended books ................................................................................................................... 5
4.3
Electronic Reserves (e-Reserves)................................................................................................. 5
4.4
Library services and resources information ................................................................................... 6
5
STUDENT SUPPORT SERVICES FOR THE MODULE ............................................................... 6
6
MODULE-SPECIFIC STUDY PLAN ............................................................................................. 7
7
MODULE PRACTICAL WORK AND WORK-INTEGRATED LEARNING .................................. 14
8
ASSESSMENT ........................................................................................................................... 15
8.1
Assessment criteria..................................................................................................................... 15
8.2
Assessment plan ........................................................................................................................ 15
8.3
General assignment numbers ..................................................................................................... 16
8.3.1
Unique assignment numbers ...................................................................................................... 16
8.3.2
Due dates for assignments ......................................................................................................... 16
8.4
Submission of assignments ........................................................................................................ 17
8.5
Assignments ............................................................................................................................... 18
9
OTHER ASSESSMENT METHODS ........................................................................................... 30
10
EXAMINATION ........................................................................................................................... 30
11
FREQUENTLY ASKED QUESTIONS ........................................................................................ 31
12
SOURCES CONSULTED ........................................................................................................... 31
13
CONCLUSION............................................................................................................................ 31
14
ADDENDUM ............................................................................................................................... 31
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ECS4862/101/0/2019
1
INTRODUCTION
Dear Student
Welcome to Advanced Microeconomics
This is one of five courses that you have to study for the honours degree in Economics. We
hope that you will find it stimulating and rewarding. We shall do our best to help you succeed in
the course. Most of your success, however, will depend on YOUR own effort. You will be well on
your way if you start studying early in the year, making a conscious decision to do the
assignments properly and adhere to the deadlines.
In this module you will build on the foundation that was laid during the undergraduate
microeconomics course. The main aim of this course is to broaden and deepen your
understanding of microeconomic theories and also equip you with the knowledge and insight
required to apply these theories to real world economic phenomena. At the end of the course
you should be in a position to function effectively as an economist - be it in the private sector,
public sector or in academia. Microeconomics is used in many places, particularly in the
formulation of industrial policy by government, in studying anti-competitive practices, in
analysing economy-wide impacts of government policies and understanding poverty.
Postgraduate microeconomics is taught in various universities in the country and has become
increasingly mathematical. This means that you will also be introduced to the mathematical
techniques used in microeconomic theories in order to be able to understand the theories. This
will help you appreciate the relevance and applicability of microeconomic tools. This course will
not focus on mathematics but will help you master the theory behind a microeconomic topic first
and then introduce you later to alternative mathematical approaches of handling the same
material. You will mostly be using elementary differential calculus and simple simultaneous
equations and statistical techniques.
One of the recent developments in microeconomics is the use of game theory and information
economics, a branch of mathematics used to model behaviour in oligopolistic markets and
similar situations. Given the widespread use of game-theoretical concepts in modern
microeconomic literature, we have no option but to include a basic treatment of these theories in
the curriculum.
Postgraduate studies require a greater degree of self-discipline and independent thinking than
undergraduate studies. We realise that studies at this level are not always easy. Although we
adopt a different approach with respect to the use of mathematics, we still expect you to master
the theoretical concepts because it is important to us that the standard of our honours course is
on par with similar courses offered at other universities. It is thus in your interest that this course
maintains its standards, because once you graduate, you will compete for jobs with graduates
from other universities.
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2
PURPOSE OF AND OUTCOMES FOR THE MODULE
2.1
Purpose
The purpose of this module is broaden and deepen your understanding of microeconomic
theories and also equip you with the knowledge and insight required to apply these theories to
real world economic phenomena.
2.2
Outcomes
At the end of this course, you should be able to:



demonstrate knowledge of neoclassical theories not encountered at undergraduate level,
including applied neoclassical microeconomics known as the structure-conduct-performance paradigm
use game theory for strategic thinking and strategic decision-making especially in understanding collusive firm behaviour
Critically evaluate non-neoclassical microeconomic theories, such as managerial, behavioural and new institutional economics.
3
LECTURER(S) AND CONTACT DETAILS
3.1
Lecturer(s)
We, the lecturers who are responsible for this course, are available to assist you with any enquiries
concerning the prescribed content. You may contact us as follows:
LECTURER
E-MAIL ADDRESS
TELEPHONE
OFFICE
Moyo, B. Prof
moyob@unisa.ac.za
012 433 4621
Office 4.45, Samuel Pauw Building
Breytenbach, A. Ms
breyta@unisa.ac.za
012 433-4706 Office 5-72, Samuel Pauw Building
You can also contact us by e-mail via myUnisa.
All queries that are not of a purely administrative nature but are about the content of this course
should be directed to us.
3.2
Department
Please note that the Department of Economics has moved back to main campus and is now located at
the following address
Department of Economics
Samuel Pauw Building
4th and 5th Floors
UNISA Main Campus
Muckleneuk
Pretoria
3.3
University
If you need to contact the university about matters not related to the content of this course, please
consult the publication myStudies@Unisa which you received with your study material. This brochure
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contains information on how to contact the university (eg to whom you can write for different queries,
important telephone and fax numbers, addresses and details of the times certain facilities are open).
Always have your student number at hand when you contact the university.
The College of Economics and Management Sciences (CEMS) has a College Information Coordinator to
whom you may direct enquiries, which will then be channeled to the correct department. Her details are
as follows:
Portia Ngcobo
College Information Coordinator
College of Economics and Management Sciences
Tel: 012 429 3925 : E-mail: CEMSenquiries@unisa.ac.za
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MODULE-RELATED RESOURCES
4.1
Prescribed books
The prescribed textbooks for this course are:
Pindyck, RS & Rubinfeld, DL. 2013. Microeconomics. 8th edition. Upper Saddle River, NJ: Prentice Hall.
Lipczynski, J, Wilson, J & Goddard, J. 2013. Industrial organization: competition, strategy, policy. 4th
edition. Harlow, England: Prentice Hall.
Please refer to the list of official booksellers and their addresses listed in the myStudies@Unisa
brochure. Students are advised to buy any latest edition available from the bookstores.
Prescribed books can be bought from the University's official booksellers. If you have difficulty in locating
your book at these booksellers, please contact the Prescribed Book Section at telephone 012 429 4152
or e-mail vospresc@unisa.ac.za
4.2
Recommended books
There are no recommended books in this course. Students are however encouraged to read
other books in the library that cover the same material prescribed for this course.
4.3
Electronic Reserves (e-Reserves)
In addition to the prescribed books, some reading material (eg journal articles) is prescribed and
can be ordered from the Unisa Library. Please consult myStudies@Unisa on how to order
photocopies from the Library, as well as how to access the electronic format of these sources.
Downloading the articles and extracts from books from the internet is much cheaper and quicker
than ordering them to be sent to you by post.
The prescribed readings are as follows (in alphabetical order):
Coase, R. 1960. The problem of social cost. Journal of Law and Economics 3:1-44.
Evensky, J. 2004. Economics in context. Journal of Economic Education, Spring:197-211.
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Fourie, FC van N. 1996. Industrial concentration levels and trends in South Africa: completing
the picture. South African Journal of Economics 64(1), March:97-121.
Hodgson, GM. 1998. The approach of institutional economics. Journal of Economic literature
36(1):341-350.
Mbatha, CN & Antrobus, GG. 2008. Institutions and economic research: a case of location
externalities on agricultural resource allocation in the Kat River Basin, South Africa.
Agrekon 47(4):470-491.
North, DC. 1986. The new institutional economics. Journal of Institutional and Theoretical
Economics 142(1):230-237.
North, DC. 1992. The new institutional economics and development. American Economist,
Spring:3(6):1-8.
Simon, HA. 1986. Rationality in psychology and economics. Journal of Business 59(4):S209S224.
4.4
Library services and resources information
For brief information go to : http://www.unisa.ac.za/contents/studies/docs/myStudies-atUnisa2016-brochure.pdf
For more detailed information, go to the Unisa website: http://www.unisa.ac.za/, click on Library
For research support and services of Personal Librarians, go to:
http://www.unisa.ac.za/Default.asp?Cmd=ViewContent&ContentID=7102
The Library has compiled numerous library guides:





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find recommended reading in the print collection and e-reserves http://libguides.unisa.ac.za/request/undergrad
request material - http://libguides.unisa.ac.za/request/request
postgraduate information services - http://libguides.unisa.ac.za/request/postgrad
finding , obtaining and using library resources and tools to assist in doing research
http://libguides.unisa.ac.za/Research_Skills
how to contact the Library/find us on social media/frequently asked questions http://libguides.unisa.ac.za/ask
STUDENT SUPPORT SERVICES FOR THE MODULE
For information on the various student support systems and services available at Unisa (e.g.
student counselling, tutorial support programme and classes, language support), please consult
the publication myStudies@Unisa that you received with your study material.
5.1
Contact with fellow students: Study groups
It is advisable to have contact with fellow students. One way to do this is to form study groups.
You can get the names of other students in your area for the same courses by contacting the
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Department of Student Admission and Registration. For further information, please consult the
myStudies@Unisa brochure.
5.2
myUnisa
If you have access to a computer that is linked to the internet, you can quickly access resources
and information at the university. The myUnisa learning management system is Unisa's online
campus that will help you to communicate with your lecturers, with other students and with the
administrative departments of Unisa – all through the computer and the internet.
To go to the myUnisa website, start at the main Unisa website, http://www.unisa.ac.za, and then
click on the “Login to myUnisa” link on the right-hand side of the screen. This should take you to
the myUnisa website. You can also go there directly by typing in http://my.unisa.ac.za.
Please consult the myStudies@Unisa brochure.
5.3
Discussion classes
We will no longer be offering any discussion classes in this course as per university directive.
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MODULE-SPECIFIC STUDY PLAN
6.1
Assignments and learning
Assignments are seen as part of the learning material for this course. As you do an assignment, study
the texts, consult other resources or discuss the work with fellow students, you are actively engaged in
learning. Looking at the assessment criteria given for this course, the three assignments will help you to
understand what is required of you more clearly.
ALL ASSIGNMENTS ARE NOW SUPPOSED TO BE SUBMITTED ONLINE IN PDF FORMAT.
PLEASE MAKE SURE YOU ADHERE TO THIS REQUIREMENT SO THAT YOUR ASSIGNMENT IS
PROCESSED TIMEOUSLY.
6.2
General remarks
Enquiries about assignments (e.g. whether or not the university has received your assignment or the
date on which an assignment was returned to you) must be directed to info@unisa.ac.za. You might also
find information on myUnisa.
Use your myStudies@Unisa brochure for general time management and planning skills.
6.3
Feedback on assignments
You will receive the correct answers automatically for multiple-choice questions. For written
assignments, markers will comment constructively on your work. However, feedback on assignments
will be sent to all students registered for this course in follow-up tutorial letters, and not only to those
students who submitted the assignments. The tutorial letter numbers will be 201, 202 and 203.
As soon as you have received the feedback, please check your answers. The assignments and the
feedback on these assignments constitute an important part of your learning and should help you to be
better prepared for the next assignment and the examination.
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6.4
Requirements for essay questions
6.4.1 How to approach an essay question
When writing an essay, your aim should be to persuade the reader that (1) you UNDERSTAND the
question, (2) you can EVALUATE the topic on the basis of the information that is available, (3) you can
synthesise the themes and main arguments in the topic, and (4) you can PRESENT your arguments in
an essay format of a high academic standard. These goals must be pursued throughout the essay.
Essay questions cannot be answered by simply studying and summarising a specific part of the
prescribed book or a specific part of the reading material. You should study all the relevant prescribed
sources and then incorporate them into your answer as your own argument and in a systematic manner.
STUDYING ONLY SOME OF THE SOURCES WILL NOT BE ENOUGH FOR YOU TO PASS.
We try to ask "indirect" questions in essay assignments. There is no single correct answer to such
indirect questions. They cannot be answered adequately by simply copying or summarising sections of
the prescribed material. They require you to read, at the very minimum, the relevant prescribed material
and to think about the question independently. Different students should therefore express a wide range
of well-considered opinions.
Use the following steps when answering an essay assignment:
THE FIRST STEP IS TO DETERMINE THE GOAL. Before you start writing an essay you should first
determine exactly what is required by analysing the question. Underline the KEY WORDS in the
question and look for VERBS in the question as instructions to know what you must do.
When asked to discuss a statement, you must first decide whether or not it is true, or in what
circumstances it may be true. You must identify, explain and evaluate all the relevant arguments and put
forward your own arguments and conclusion.
Questions starting with words such as "discuss" are presented in the form of an instruction, but usually
contain one or more "hidden" questions. Always try to formulate such questions for yourself. You should
conclude your essay with your own final answer to such questions.
THE SECOND STEP IS TO DETERMINE THE SOURCES. The main sources are the prescribed
literature and the TLs. You may also make use of other books, journals, articles, reviews or reports that
are applicable to the topic. If, in the course of your investigation, you come across a book that you are
not familiar with, first study the table of contents and then the subject index at the back of the book.
READ the material, seeking answers to the questions mentioned above. Also study the overview of the
relevant part of the syllabus that will be given in a subsequent TL. Do not expect to find all the direct
answers in the sources. Some answers can be found only by logical deduction from information found in
different places. When reading the material, make sure that you know what the concepts you identified in
the first step mean and decide which of the material is relevant to the question at hand. You obviously
have to do all this BEFORE YOU EVEN START WRITING YOUR ANSWER.
THE THIRD STEP IS TO PLAN YOUR ANSWER. Draw up a framework for your essay. An assignment
essay in Economics Honours should not be in the form of a short story, but should be structured by
means of NUMBERED HEADINGS AND SUBHEADINGS. After reading the relevant study material and
BEFORE WRITING the essay, consider the relative importance of the various arguments and
systematise them by drawing up a scheme of headings and subheadings that will later become a table of
contents when you add the relevant page numbers. Always begin the essay with a short introduction and
end it with a conclusion. Drawing up a scheme will help you structure your thoughts and develop your
arguments. And a good introduction will help the reader gain an overview of the essay. In this process
you will need to refer back to the material you identified as relevant.
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THE FOURTH STEP IS TO WRITE THE ESSAY. The people marking your essay expect you to do the
following:

On the cover page, formulate a TITLE. An essay should have a properly formulated title,
and should not simply read "Question 1" or "Assignment 02". Also, do not rewrite the
question as it is given to you. Select the key words and use them in your title suggesting
your main message. The title and headings of the essay should not contain any full stops.

On the next page, compile a TABLE OF CONTENTS, consisting of the headings (and subheadings) of the essay as well as the page numbers on which the headings occur.

On the next page, provide an INTRODUCTION that will capture the reader's attention by
briefly introducing the topic, explaining how you will deal with it and what your conclusions
will be.

Organise the MAIN PART (ie the main body between the introduction and the conclusion)
of the essay in the way that you find most appropriate. This part usually consists of more
than one section, with the sections having their own appropriate headings. Do NOT use
words such as "body" or "main section" as the headings of the body of the essay. The
headings in the main body of the essay must be INDICATIVE OF THE TOPIC CONTENTS
or themes of each particular subsection. The essay must follow a line of ARGUMENT
THAT LOGICALLY LEADS TO THE CONCLUSION.

The CONCLUSION should contain a summary of your main findings. The conclusion must
be your own final answer to the assignment question. The findings must follow logically
from foregoing analyses and discussion. Do not quote other authors in the conclusion.
Important quotations should be given in the main body of the essay before the conclusion.

Below is an example of a possible structure of an essay:
Title: on the cover page (eg “The move towards business privatisation in African
countries”) Table of contents: on the next page.
Introduction: on the next page (eg Give an overview definition of privatisation as a policy
tool for economic reform, a brief overview of past trends in Africa and a brief indication of
what you intend writing about in your essay).
Heading 1: (eg Business privatisation as a policy tool for economic reform).
Subheading 1.2: (eg Historical trends on moves towards privatisation in various African
countries).
Heading 2: (eg Recent African trends towards business privatisation and underlying
justification).
Heading 3: (eg The current economic and social effects of business privatisation).
Heading 4: (eg Possible future policy changes in privatisation).
Conclusion: (eg Include a short summary of the main points you have discussed in the
essay and then highlight one or two critical findings possibly about future policies on
privatisation in Africa).
Always acknowledge your sources by placing any direction quotations in quotation marks
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and by including TEXT REFERENCES (where appropriate, to specific pages) and a
BIBLIOGRAPHY at the end of your essay. Consult section 7.5.2 below in this regard.

WRITE INTELLIGIBLY. Define the important concepts that you use and make sure that
your statements follow logically upon one another. Avoid conflicting statements at all costs,
unless you are illustrating that different authors have different opinions on a particular
topic. Otherwise do not, for example, conclude with conflicting statements, since the
person marking your essay cannot know which statement YOU regard as correct. Hence,
no marks will awarded for contradictory statements attributable to you as the author of
your essay. You will probably have to write and revise most of your essay a number of
times. This is the normal writing process, even for experienced writers.

WRITE LEGIBLY. It will be much appreciated if you type your essay. If you cannot, in your
own interest, always write neatly and legibly to ensure that all the sections of the
assignment can be marked effectively.

Do not exceed the prescribed LENGTH of the assignment. The prescribed length is 2 000
words for a long essay and 1 000 words for a short essay (excluding the table of contents,
diagrams and bibliography). An additional aim of an essay assignment exercise is to teach
and test that you can present your arguments within the stated number of words, even
though we know that you could write a longer essay about the topic. Do not, however, use
a telegram writing style – use full sentences, grouped into paragraphs, using the correct
punctuation and grammar and a consistent tense.

DO NOT LOSE SIGHT OF YOUR AIM. Your answer should be precise, without any
individual subsection being too lengthy, making your essay lopsided. Ensure that every
sentence that you write is relevant – do not repeat points and pad ideas, and never waffle.
Examples should be used sparingly and wisely and not as replacements for logical
reasoning. All diagrams and graphs in your essay must be explained and discussed –
hence the inclusion of only relevant diagrams and graphs.

FROM YOUR ESSAY IT MUST BE CLEAR THAT YOU USED ALL THE RELEVANT
PRESCRIBED READING MATERIAL. We also strongly encourage you to read beyond the
prescribed and required list of references. The more relevant sources you cite, the more
marks you are likely to receive. The study programme in section 8 gives you an indication
of the portion of the syllabus that you should have read by the due date for every
assignment. If any section is relevant to an assignment, it should be clear that you made
use of it.

DO NOT COPY sections of the reading material – USE YOUR OWN WORDS. If we find
large sections of your essay bearing a close resemblance to an original text, you will NOT
BE GIVEN A PASS MARK for that particular assignment. Copying and pasting from the
internet or other digital sources is a criminal offence in plagiarism and particularly
unacceptable at Unisa, also because doing so frequently results in students not absorbing
any of the plagiarised information. Carefully consider and think about the information or
views before using them in your essays. Do not make up your assignment from a
succession of extracts from the reading material. To convince us that YOU UNDERSTAND
the issues raised in the assignment questions, you should discuss the concepts and ideas
with a framework designed by you – not the one dictated by the source. Students
submitting their answers in Afrikaans must take care not to merely present us with
translations of English texts.
In Economics Honours you often have the opportunity to express your own opinions, which may differ
from those expressed in the prescribed material. Such views, however, should be validated through
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credible data from sources and sound deductive reasoning, but should not be motivated by personal
feelings. We expect A CRITICAL-ANALYTICAL APPROACH and a well-thought-out, LEVEL-HEADED
CONCLUSION.
6.4.2 How to acknowledge sources and present bibliographical details
In all academic discourse, including written text, the work of other people that is used must always be
acknowledged. Any direct quotations (ie sentences or phrases copied from a particular source) MUST be
in QUOTATION MARKS.
In the text itself, BOTH DIRECT AND INDIRECT QUOTATIONS (including universally accepted notions,
data, peculiar sayings or ideas obtained from a source) must be REFERENCED in brackets. Always
include a comprehensive BIBLIOGRAPHY or LIST OF REFERENCES at the end of an assignment.
There are various ways of REFERENCING. Our preferred system is the Harvard method, which is the
most widely used one in economics texts. The Harvard system requires a bibliography (ie a list of all the
sources used) at the end of the essay. Since this list contains full bibliographical details, all the details
need not be reproduced in the body of the essay itself. Do not use footnotes for in-text referencing.
When referring to a source in your discussion, simply provide the following information in round brackets:
the author's surname, the year of publication, a colon and the page number(s). For example, a reference
to a statement made by Schwartz on page 45 of his/her article published in 1986, may look like this:
It is concluded that the contestability theory has restricted applicability (Schwartz 1986:45).
Anybody wishing to know the title of this source and where it may be found merely needs to consult the
bibliography entry on Schwartz (1986) at the end of the essay.
If the author's surname forms part of the sentence, it is followed, in round brackets, by the year of
publication, a colon and the page number(s) - for example:
Schwartz (1986:45) came to the conclusion that the contestability theory has restricted
applicability.
If a whole book or article, instead of particular pages is referred to, the colon and page number(s) are
omitted. For example:
Jones (1998) and Smith (1999) discuss monetary versus fiscal policy.
OR
The two authors (Jones 1998; Smith 1999) have different views on the relative efficiency of
monetary and fiscal policy.
Reference only sources you consulted first hand. So, if your source refers to another source, mention
only the surname of the other author and give a text reference to YOUR source. If your reader wishes to
follow up the information, he or she can find the bibliographical details in your source. For example, if
you consulted Koutsoyiannis, who writes about the ideas first proposed by Simon and expanded upon by
Cyert and March, but you did not consult either Simon or Cyert and March yourself, then you must write
the following:
Some of the seminal work in behavioural theory was done by Herbert Simon in 1955, and this work
was subsequently expanded upon by Cyert and March (Koutsoyiannis 1979:386).
Two or more sources by the same author published in the same year should be distinguished by means
of the letters "a", "b", and so on, after the year of publication (without a space between the year and the
letter) in both the bibliography and in-text references. For example, if you consulted two sources by
Koutsoyiannis, which were written in the same year, say, 1979, refer to them in the text and bibliography
11
as Koutsoyiannis (1979a) and Koutsoyiannis (1979b). Otherwise, do not use the letters “a”, “b”, etc, in
the body text and in the bibliography.
Although at times it may be necessary to use direct quotations, you should keep them to a minimum,
because we wish to see if you can present other people’s ideas in your own words. If you do make use
of a direct quotation, make sure that it is EXACTLY as in the original text, and reference it in the
following manner:
He recognises "that contestability proponents offer a valuable insight: namely that fixed costs need
not be sunk" (Schwartz 1986:38).
The BIBLIOGRAPHY must be at the end of the essay, arranged in alphabetical order according to the
authors' surnames. The BIBLIOGRAPHY LIST must include ALL the references you used to prepare
your essay, but the LIST OF REFERENCES must include ONLY the sources that YOU quoted or
referred to directly in your essay. Whether you choose to have a bibliography or a list of references at
the end of your essay is up to you – your choice will not affect your mark.
The information that needs to be provided in the bibliography or list of references, when you are
referencing a BOOK, should include the surname and initials of the author, the year of publication, the
title of the book, the place of publication and the name of the publisher. The name of the book must be in
italics. Note the following example:
Keynes, JM. l936. The general theory of employment, interest and money. London: Macmillan.
The information you need to provide in the bibliography or list of references when you are referencing a
journal article, should include the surname and initials of the author, the year of publication and the name
of the article, along with the title, volume number and date of publication of the journal and the page
numbers of the article. The title of the journal, and NOT the title of the article, should be in italics, as
indicated below.
Davidson, P. 1967. A Keynesian view of Patinkin's theory of employment.Economic Journal 77:559–578.
The information referencing an article in a collection of essays should be entered as follows:
Clower, RW. 1965. The Keynesian counterrevolution: a theoretical appraisal, in The theory of interest
rates, edited by FH Hahn & FPR Brechling. London: Macmillan:103–125.
In the above reference, the title of the book from where the article by Clower comes, is in italics (ie The
theory of interest rates).
At postgraduate level, it is essential to provide a complete bibliography at the end of an essay, because
this is the academically correct way of doing things. TLs, including those from previous years, used as
sources must also be mentioned in your bibliography and must be referenced in the text in the
appropriate places.
Increasingly more sources are being made available on the internet. You may make use of such
sources, but only if they are peer reviewed (such as articles in refereed journals).
Many articles previously published in hard-copy journals are now available in PDF format on the internet.
If printed out, the pages look like the ones in the original journal, and the page numbers are the same.
Such articles are referenced in the same way as explained above.
Sources that are available on the internet only in digital form are referenced in a different way.
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If the name of the author is available, the name and the year in which the source was accessed should
be included in the text reference, for example:
Peters (2008) is of another opinion, namely that ...
OR
It has been argued that ... (Peters 2008).
Because the page numbers of such sources, if printed out from different computers, may vary, no page
numbers are given.
Sources such as the above should be entered in the bibliography or list of references in the following
manner:
Peters, SJ. Decisions under risk. Available online: www.georgeweb/123/1/home.html [accessed on 3
March 2009].
The above reference should follow the alphabetical list of the bibliography based on the letter “P” of the
surname of the author. In the absence of the name of the author, however, the source should follow the
alphabetical list in the bibliography based the letter “D”, the first letter of the title, namely "Decisions
under risk", in the following manner:
Decisions under risk. Available online: www.georgeweb/123/1/home.html [accessed on 3 March 2008].
In the above case, where the surname of the author is not available, the title of the document, should be
used for in-text references in the following manner:
In a document entitled Decisions under risk (2008), another opinion is mentioned, namely
OR
It has been argued that ... (Decisions under risk, 2008).
There should be no hyperlinks in the bibliography – that is, web addresses should not be blue or
underlined. Try to keep the URL on one line, but if you do have to break it, do so after a forward slash or
a full stop. References must include the full address, and not just "www. ...".
6.5
Learning strategy and proposed study programme
In this course, the emphasis is very much on the development of your understanding of different
microeconomic theories and schools of thought (groups of authors that present or use similar theories).
Therefore, you will be exposed to a number of different concepts, such as the different assumptions
which underlie the theoretical models, the interaction between the various microeconomic variables, the
different analytical tools, and the economic policy implications of each model.
You should take time and reflection to fully grasp the issues covered in this course, and especially, to
develop the ability to analyse theories and policies holistically. Also, it has been proven time and again
that diligent and constant work throughout the year markedly improves students' chances of passing this
course – meaning that you cannot cram for this course, because you simply need sufficient time to
develop your understanding of the issues, theories and policy approaches. Such an understanding is
usually gained only after studying the material a second or third time. There are no shortcuts to success!
Each section of the syllabus covers one or more chapters from the prescribed books and/or one or more
parts of the prescribed reading material. Each prescribed chapter or part of the reading material should
be approached as follows:
13
Firstly, read the introductory notes in the TL containing the "overview of the syllabus". This should help
you focus on the important aspects and issues in the applicable study material. Secondly, read the
relevant study material attentively, making notes as you read. Thirdly, return to the TL containing the
"overview of the syllabus" and try to answer the questions at the end of the relevant section of the
syllabus. You need not write out the answers in full, but decide on a structure and write down key words
of material that you would discuss under each heading and subheading. Following these steps will help
you master the study material and prepare for the examination.
To help you work on this course in a systematic manner and on a regular basis, you should draw up a
timetable and strictly adhere to it. By the time that you hand in the last assignment, you should have
studied the entire syllabus at least once. Also, you should study specific sections of the syllabus before
doing each assignment. To help you draw up the timetable, below we give you an indication of the
sections of the syllabus that you should have studied by the due date for each assignment:
Date
Sections that should have been studied
3 May 2019
1
1.1
1.2
1.3
1.4
1.5
Revision of undergraduate neoclassical microeconomics
Introduction
The basics of supply and demand
Theory of demand
Theory of production and cost
Markets
12 July 2019
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
3
3.1
3.2
Expansion of neoclassical microeconomics
Network externalities and empirical estimation of demand
Choice under uncertainty
Monopsony
Oligopoly, game theory and competitive strategy
Oligopoly: collusive models
Input markets
General Equilibrium and Economic Efficiency
Markets with Asymmetric Information
The structure-conduct-performance paradigm
Criticism and application of the neoclassical microeconomic theory
Testing the SCP paradigm by measuring and comparing market
concentration and performance
4 October 2019
4
4.1
4.2
4.3
Non-neoclassical microeconomics
Managerial theory of the firm
Behavioural theory of the firm
Old and new institutional economics
5
5.1
5.2
5.3
5.4
Microeconomic policy
Government intervention in competitive markets
Externalities and public goods
Competition policy
Regulation
7
MODULE PRACTICAL WORK AND WORK-INTEGRATED LEARNING
At the moment this facility is not available in the module.
14
ECS4862/101/0/2019
8
ASSESSMENT
8.1
Assessment criteria
Revision exercises and questions at the end of each unit are meant to help you test or gauge
your understanding of the chapter that you have studied. Please attempt these questions and
do not hesitate to ask us for assistance regarding those that you find challenging. This will
definitely help you in preparing for the final exam or even in your assignments.
In attempting these questions, you should demonstrate a sound understanding of the
fundamental concepts or the content of each chapter as well as show its applicability to the real
world. Mastering the main fundamentals or building blocks of the chapter is important and will
give you the flexibility to answer any question be it applied or just theoretical.
8.2
Assessment plan
Assessment criteria used for the assignments will done as follows: the multiple-choice questions in
Assignment 01 will be marked electronically in accordance with a mark-reading 'master' provided to the
Assignment section by the course leader. Two marks will be awarded for each correct answer. No marks
will be deducted for incorrect answers.
Please note: Although students may work together when preparing assignments, each student
must write and submit his or her own individual assignment. In other words, you must submit
your own ideas in your own words, sometimes interspersing relevant short quotations that are
properly referenced. It is unacceptable for students to submit identical assignments on the basis
that they worked together. That is copying (a form of plagiarism) and none of these assignments
will be marked. Furthermore, you may be penalised or subjected to disciplinary proceedings by
the university.
8.2.1. Assessment of examination
For general information and requirements as far as examinations are concerned, see the brochure
myStudies@Unisa which you received with your study material.
Please note that the applications for, and the administration of re-marks of examination scripts are
handled solely by the Examinations department; not by academic departments.
8.2.2. Examination admission
Please note that you need a subminimum of 40% to gain admission to the examination. This means
that the total year mark that you get from all the three assignments should at least be equal to 40%. All
three assignments will contribute towards the year and final marks.
To calculate the subminimum we do the following: assume you got 50% in assignment #1, 70% in
assignment #2 and 80% in assignment #3
Your year mark is therefore: 50% x 0.3 + 70% x 0.35 + 80% x 0.35 = 67.5%.
The final mark that you will obtain after doing these calculations should at least be greater than
40% for you to gain exam admission.
15
How will this work in practice?
Year mark
Your year mark is based on your assignment marks. The three assignments that you submit during the
year contribute towards your year mark. The first assignment contributes 30%, while the second and
third assignments contribute 35% each.
If an assignment is not submitted or submitted late (for whatever reason), zero marks are awarded for
such assignment.
The examination mark
The percentage achieved in the examination is used in the calculation of your final mark.
Final mark
Your year mark will contribute 20% to your final mark, while your examination mark will contribute 80%.
Your final mark is calculated as follows:
Year mark (out of 100) x 20% + Examination mark (out of 100) x 80%
For example:
Suppose your year mark is 46% and you get 60% in the examination. Your final mark will be:
(46 x 20%) + (60 x 80%)
= (46 x 0,2) + (60 x 0,8)
= 9,2 + 48,0
= 57,2%
8.3
General assignment numbers
Assignments are numbered consecutively per course, starting from 01. In this course there are three
assignments per year, namely 01, 02 and 03.
8.3.1 Unique assignment numbers
In addition to the general assignment number (eg 01 or 02), each assignment (multiple-choice questions
and written assignments) has its own unique assignment number (eg 553319). In this course assignment
01 consists of multiple-choice questions only and must therefore be completed on a marking-reading
sheet on which its own unique assignment number must be entered in the space provided. Assignments
02 and 03 are written assignments. Please fill in the unique assignment number of each of them on the
cover page of the assignment in the space provided.
8.3.2 Due dates for assignments
ASSIGNMENT SUBMISSION DATES
Assignment
number
16
Unique
number
Closing date
Contents of
assignments
Type of
assignment
01
3 May 2019
Sections 1
Multiple-choice
02
12 July 2019
Sections 2 and 3
Written
03
4 October 2019
Study units 4 and 5
Written
ECS4862/101/0/2019
8.4
Submission of assignments
You may submit written assignments and assignments completed on mark-reading sheets either by post
or electronically via myUnisa. Assignments may not be submitted by fax or e-mail.
For detailed information on assignments, please refer to the myStudies@Unisa brochure.
To submit an assignment via myUnisa:
Go to myUnisa.
Log in with your student number and password.
Select the course.
Click on assignments in the menu on the left-hand side of the screen.
Click on the assignment number you wish to submit.
Follow the instructions on the screen.
17
8.5
Assignments
COMPULSORY ASSIGNMENT 01
DUE DATE: 3 MAY 2019
UNIQUE NUMBER:
This assignment consists of 40 multiple choice questions, counting 2.5 marks each. No marks
will be deducted for incorrect answers.
The questions are based on the following chapters and sections of Pindyck and Rubinfeld
(2013):
Chapter 3, all sections
Chapter 4, sections 4.1 to 4.4
Chapter 6, all sections
Chapter 7, sections 7.1 to 7.5
Chapter 8, all sections
Chapter 10, sections 10.1 to 10.6
Chapter 11, sections 11.1 to 11.2
Chapter 12, section 1
Chapter 16, all sections.
This material covers the typical second-year microeconomics syllabus taught at South African
universities and can be regarded as revision of undergraduate work.
As in the textbook, we use the comma (,) to separate thousands and the full stop (.) as a
decimal point.
For each question, indicate the CORRECT option on a mark-reading sheet. For detailed
information on the submission of multiple-choice assignments, consult the publication
myStudies@Unisa, which you received with your tutorial matter and which contains clear
guidelines on how to complete a mark-reading sheet.
IT IS OF THE UTMOST IMPORTANCE TO ENTER THE UNIQUE NUMBER ON THE MARKREADING SHEET.
Multiple-choice assignments may also be submitted via the internet. Log in on myUnisa and
follow the instructions.
Chapter 3
1.
If a consumer is always indifferent regarding an additional one banana fruit or an
additional two apples then, when apples are on the horizontal axis, the indifference curves
…
[1]
[2]
[3]
[4]
18
will be straight lines with a slope of -1/2.
will be straight lines with a slope of -1.
will be straight lines with a slope of +1/2.
will be right angles whose corners occur on a ray from the origin with a slope of +2.
ECS4862/101/0/2019
2.
Good D is an inferior good. If the price of good D were to suddenly double, the
substitution effect would cause the purchases of good D to increase by …
[1]
[2]
[3]
[4]
[5]
3.
Which of the following is true about a consumer's optimum when indifference curves
are concave to the origin?
[1]
[2]
[3]
[4]
4.
Both goods are consumed.
No goods are consumed.
Only one of the goods is consumed.
It occurs at the point of tangency with the budget line.
If a consumer must spend her entire income on some combination of two commodities and
chooses to spend it all on just one of the commodities, then
[1]
[2]
[3]
[4]
5.
more than double.
exactly double.
less than double.
Any of the above are possible
None of the above.
the other commodity is an economic bad.
the other commodity must have zero marginal utility.
the other commodity generates less utility per rand spent on the good.
the two commodities must be perfect substitutes
An Indifference curve is:
[1]
[2]
[3]
[4]
A collection of market baskets that are equally desirable to the consumer.
A collection of market baskets that the consumer can buy.
A curve whose elasticity is constant for every price.
A curve which passes through the origin and includes all of the market baskets that
the consumer regards as being equivalent.
Chapter 4
6.
When the income-consumption curve has a positive slope throughout its entire length, we
can conclude that
[1]
[2]
[3]
[4]
both goods are inferior.
both goods are normal.
the good on the vertical (y) axis is inferior.
the good on the horizontal (x) axis is inferior.
19
7.
Samuel's income-consumption curve is a straight line from the origin with a positive
slope. Now suppose that Samuel's preferences change such that his incomeconsumption curve remains a straight line but rotates 15 degrees clockwise. Samuel’s
demand curve for the good on the horizontal axis
[1]
[2]
[3]
[4]
8.
Assume that a car is a normal good. If the price of cars rises, then the substitution effect
results in the person buying _________ of the good and the income effect results in the
person buying _________ of the good.
[1]
[2]
[3]
[4]
9.
will shift left.
will shift right.
will not change.
might do any of the above.
more, more
more, less
less, more
less, less
Income elasticity of demand measures the
[1]
[2]
[3]
[4]
slope of the demand curve.
sensitivity of quantity demanded to changes in the price of normal goods.
sensitivity of price to changes in the quantity demanded of inferior goods.
sensitivity of quantity demanded to changes in income.
10. Microsoft wants to calculate the effect of a worldwide 5% price cut on its sales of W in d o ws 7 s o f t wa r e to clients in different ountries. Microsoft sells W indows 7 at
different prices in the US, Japan and Europe. Before the price cut, US sales were twice
the sales in Japan and Europe. If the price elasticity of demand in the US, Japan and
Europe is -2, -6, and -4 respectively, the worldwide sales rise on average by
[1]
[2]
[3]
[4]
[5]
10%
20%
30%
25%
None of the above
Chapter 6
11. When average product is increasing, marginal product
[1]
[2]
[3]
[4]
20
equals average product.
is increasing.
exceeds average product.
is less than average product.
ECS4862/101/0/2019
12. If the law of diminishing returns applies to labour, then
[1]
[2]
[3]
[4]
[5]
the marginal product of labour must eventually become negative.
the average product of labour must eventually become negative.
the marginal product of labour must rise and then fall as employment rises.
the average product of labour must rise and then fall as employment increases.
after some level of employment, the marginal product of labour must fall.
13. Marginal product crosses the horizontal axis (is equal to zero) at the point where …
[1]
[2]
[3]
[4]
[5]
average product is maximised.
total product is maximised.
diminishing returns set in.
output per worker reaches a maximum.
All of the above are true.
14. Which of the following correctly describes the graphical relationship between marginal product and marginal cost?
[1]
[2]
[3]
[4]
[5]
When marginal product is increasing, marginal costs will also be in creasing.
When marginal product is d e crea sin g, marg in a l co st s will b e in cre a sin g .
When marginal product curve is at its maximum, marginal costs will also be at its
maximum.
The point where marginal product cuts average product from below, i s e x a c t l y
the point where marginal costs cuts average varia ble costs.
There is no relationship between marginal product curve and the marginal costs
curve.
15. A firm's marginal product of labour is 3 and its marginal product of capital is 6 . If the
firm adds one unit of labour, but wants its output to remain unchanged, the firm should
[1]
[2]
[3]
[4]
[5]
use 6.0 fewer units of capital.
use 0.5 fewer units of capital.
use 0.5 more units of capital.
use 2 fewer units of capital.
use 2 more units of capital.
Chapter 7
16. The difference between the economic and the accounting costs of a firm is
[1]
[2]
[3]
[4]
[5]
both the implicit and explicit costs
the company tax on profits.
the opportunity costs of the factors of production that the firm owns.
the fixed costs incurred by the firm.
the explicit costs of the firm.
21
17. The total cost (TC) of producing a product (Q) is TC = 150 + 1.5Q. What is the average
fixed cost?
[1]
[2]
[3]
[4]
[5]
150/Q
1.5Q
1.5
1.5 + 150/Q
150
18. Which one of the following relationships is not valid?
[1]
[2]
[3]
[4]
[5]
When marginal cost is below average total cost, the latter is falling.
Rising marginal cost implies that average total cost is also rising.
When marginal cost is above average variable cost, AVC is rising.
Falling marginal cost implies that average total costs is falling.
None of the above
19. Use the following two statements to answer this question:
I.
The average total cost of a given level of output is the slope of the line from the origin
to the total cost curve at that level of output.
II.
The marginal cost of a given level of output is the slope of the line that is tangent to
the total cost curve at that level of output.
[1]
[2]
[3]
[4]
[5]
Both I and II are true.
I is true, and II is false.
I is false, and II is true.
Both I and II are false.
There is not enough information to determine the relative slopes of the two curves in
question.
20. For a given pair of production outputs, the degree of economies of scope
[1]
[2]
[3]
[4]
22
is constant across different output levels.
only increases as the level of output increases.
may increase or decrease with output.
will always tend to zero as output becomes very large.
ECS4862/101/0/2019
Chapter 8
21. Because of the relationship between the demand curve of a perfectly competitive firm and
its marginal revenue curve, the profit-maximisation condition for the firm can be written as
[1]
[2]
[3]
[4]
[5]
P = MR
AR= AVC
AR = MR
AR = MC [
AR = AC
22. If a competitive firm has a U-shaped marginal cost curve then
[1]
[2]
[3]
[4]
[5]
the profit maximising output will always generate positive economic profit.
the profit maximising output will always generate positive producer surplus.
the profit maximising output is found where MC=MR and MC is decreasing.
the profit maximising output is found where MC=MR and MC is constant.
the profit maximising output is found where MC=MR and MC is increasing.
23. In a supply-and-demand graph, producer surplus can be portrayed as the
[1]
[2]
[3]
[4]
[5]
vertical intercept of the supply curve.
area between the demand curve and the supply curve to the left of equilibrium output.
area under the supply curve to the left of equilibrium output.
area under the demand curve to the left of equilibrium output.
area between the equilibrium price line and the supply curve to the left of
equilibrium output.
24. What happens in a perfectly competitive industry when economic profit is less than zero?
[1]
[2]
[3]
[4]
[5]
Some existing firms may leave the industry.
New firms may enter the industry.
Firms may experience economies of scale.
There may be pressure on prices to fall.
All of the above may occur.
25. In an decreasing-cost industry, expansion of output
[1]
[2]
[3]
[4]
[5]
causes input prices to rise as demand for them grows.
leaves input prices constant as input demand grows.
causes input prices to fall as the firm grows in size.
occurs under conditions of increasing returns to scale.
occurs without diminishing marginal product.
23
Chapter 10
26. If a monopolist sets output in such a way that marginal revenue, marginal costs and
average total costs are equal, economic profit must be
[1]
[2]
[3]
[4]
negative.
positive.
zero.
indeterminate from the given information.
Use the following data to answer questions 27 and 28
Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve,
marginal revenue curve and total cost curve are given as follows:
Q= 160 – 4P;
27
MC=4
0
22
56
72
None of the above.
R4.
R22.
R32.
R42.
R72.
Which of the following is true when the government imposes a price ceiling on a
monopolist?
[1]
[2]
[3]
[4]
[5]
24
TC=4Q;
The price of her product will be …
[1]
[2]
[3]
[4]
[5]
29
MR=40-0.5Q;
How much output will Barbara produce?
[1]
[2]
[3]
[4]
[5]
28
TR=40Q - 0.25Q2
MR curve becomes horizontal.
MR curve is linear.
MR curve is kinked – horizontal and then downward sloping.
MR curve is kinked – downward sloping and then horizontal.
MR curve is vertical.
ECS4862/101/0/2019
30
The marginal cost of a monopolist is constant and is $10. The demand curve and
marginal revenue curves are as follows:
Demand: Q = 100 - P
Marginal revenue: MR = 100 - 2Q
The deadweight loss from monopoly power is
[1]
[2]
[3]
[4]
[5]
R1,000.00.
R1,012.50.
R1,025.00.
R1,037.50.
None of the above
Chapter 11
31. Rather than charging a single price to all customers, a firm charges a higher price to
men than to women. By engaging in this practice, the firm
[1]
[2]
[3]
[4]
is trying to reduce its costs and therefore increase its profit.
is attempting to convert producer surplus into consumer surplus.
is attempting to convert consumer surplus into producer surplus.
Both [1] and [3] are correct.
32. Discrimination based upon the quantity consumed is referred to as …………… price
discrimination.
[1]
[2]
[3]
[4]
[5]
first degree
second degree
third degree
fourth degree
group
33. Under perfect price discrimination, marginal profit at each level of output equals
[1]
[2]
[3]
[4]
0
P - AC
P - MC
P - AR
Chapter 12
34. A monopolistic competitor in long-run equilibrium
[1]
[2]
[3]
[4]
[5]
produces at minimum average cost.
does not produce at minimum average cost and its average cost is increasing.
does not produce at minimum average cost and its average cost is decreasing.
Either [2] or [3] could be true.
None of the above is true.
25
35. Which of the following is true in the long run for both perfectly competitive and
mono- polistically competitive firms?
[1]
[2]
[3]
[4]
[5]
P = MC
MC = ATC
P > MR
Economic profit = 0
None of the above is true.
Chapter 16
36. The markets for movie-theatre tickets and DVD rentals are interdependent. Suppose that
a tax is imposed on movie theatre tickets. The type of analysis that examines the effects
of this tax on the markets for movie-theatre tickets and DVDs simultaneously is called
[1]
[2]
[3]
[4]
[5]
macroeconomics.
general equilibrium analysis.
partial equilibrium analysis.
full market analysis.
psychoanalysis.
37. To be sure that exchange between people is mutually beneficial, we generally assume
[1]
[2]
[3]
[4]
[5]
that not all people are free to enter the market at will, but that once in, they are free
to make any offer to trade.
that all people have full information about one another's preferences.
that there are no transaction costs.
Both [1] and [2] are correct.
Both [2] and [3] are correct.
38. Assume there are only two individuals in an economy – Lisa and Bester
The utility possibilities frontier for these individuals is:
120 = UL + UB
where UL is Lisa's utility and UB is Bester's utility.
Lisa's current level of utility is 40 and Bester's current level of utility is 80. This combination
is
[1]
[2]
[3]
[4]
26
inefficient.
economically efficient.
impossible, because it is outside the utility-possibilities frontier.
None of the above is true
ECS4862/101/0/2019
39. Which of the following is a condition for efficiency in the output market?
[1]
[2]
[3]
[4]
MRT = MPL / MPK.
The marginal rate of substitution is the same for all customers.
The marginal rate of technical substitution is the same for all producers.
The marginal rate of transformation equals the marginal rate of substitution.
40. The condition that requires MRTS for each input pair to equal marginal costs is known as
………….. efficiency, and the condition that requires MRS for each output pair to equal
their output price ratio is known as …………….. efficiency.
[1]
[2]
[3]
[4]
[5]
economic; market
micro; macro
cost; revenue
technical; output
consumption; production
27
ASSIGNMENT 02
DUE DATE: 12 JULY 2019
UNIQUE NUMBER:
Short questions
Question 1
Assume the following Bertrand oligopoly models
Q1 ( Pi Pj )  a  bPi  cPj
Q2 ( Pi Pj )  a  bPj  cPi
i 1, and j  2
Fixed cos ts  m
a)
b)
Suppose the two firms set their prices at the same time. Find the resulting Nash
equilibrium. What will each firm charge, how much will it sell and what will be its profits?
Suppose Firm 1, sets its price first and then Firm 2, set its price. What price will each firm
charge, how much will it sell and what will be the profits?
Question 2
Consider two firms facing the demand curve P = 50 -5Q. The firms’ cost functions are given as
follows:
C1 (Q1 )  20  10Q1
C 2 (Q2 )  10  12Q2
a)
b)
c)
Suppose both firms have entered the industry. What is the joint profit maximising level of
output? How much will each firm produce? How would your answer change if the firms
have not yet entered the industry?
What is each firm’s equilibrium output and profit if they behave non-cooperatively? Use the
Cournot model. Draw the firms’ reaction curves and show the equilibrium.
How much should Firm 1 be willing to pay to purchase Firm 2 if collusion is Illegal but a
takeover is not?
Question 3
A firm uses a single input labour to produce output q according to the production function
q 8 L
28
ECS4862/101/0/2019
The commodity sells for R150 per unit and the wage rate is R75 per hour.
a)
b)
c)
d)
Find the profit maximising quantity of L
Find the profit maximising quantity of q and level of maximum profit
Suppose now the firm is taxed at R30 per unit of output and that the wage rate is
subsidised at a rate of R15 per hour. Assume that the firm is a price taker, so the price of
the product remains at R150. Find the new profit maximising levels of L, q and profit.
Now suppose the firm is required to pay a 20 percent tax on its profits, Find the new profit
maximising levels of L, q and profit.
As in the prescribed book, we use the comma (,) to separate thousands, and the full stop (.) as
a decimal point.
ANSWER THE QUESTIONS AS DIRECTLY AS POSSIBLE AND EXPLAIN YOUR ANSWERS.
ALL WORKINGS MUST BE SHOWN OTHERWISE, FULL MARKS WILL NOT BE AWARDED.
29
ASSIGNMENT 03
DUE DATE: 4 OCTOBER 2019
UNIQUE NUMBER:
Long essay
a)
b)
Why is the structure conduct performance so widely used to study the conduct and
performance of firms and industries? What are the limitations of this paradigm?
Explain the strengths and limitations of the neoclassical theory of the firm in enhancing our
understanding of firm behaviour
Instructions
(a)
Consult all the relevant prescribed sources.
(b)
Your essay must meet the requirements set out in section 7.5 of this tutorial letter. Note
that the essay may not be longer than the specified length!
(c)
Synthesize the arguments of different authors and do not present them in some kind of list
or bullet format; summarize and integrate them.
9
OTHER ASSESSMENT METHODS
The will only be two assessment methods used in this module. Formative assessment which will
be in the form of the three(3) assignments and summative assessment which will be the final
examination that you will write at the end of the year.
10
EXAMINATION
For general examination guidelines and examination preparation guidelines, please refer to the
myStudies@Unisa brochure.
10.1.
Examination period
This is a year course. You will sit for the examination in the January/February 2016 period. In the course
of 2015, the Examination Section will provide you with information on the examination in general, and the
relevant venues, dates and times.
10.2. Examination paper
The examination paper will consist of SIX questions, of which you must answer FOUR. The questions
may have subsections.
The examination questions will be based on the work covered in the assignments and the questions
included in the TL containing the "overview of the syllabus". However, the questions may be modified,
abbreviated or combined.
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ECS4862/101/0/2019
Some of the questions will require a few simple calculations. THESE CALCULATIONS CAN BE DONE
WITHOUT USING A CALCULATOR. Non programmable calculators are however allowed in the
examination venues.
In the examination there will be no multiple-choice questions (MCQs) such as those asked in
Assignment 01.
10.3. Previous examination papers
Some previous examination paper are available to students on myUnisa under the "official study
material" folder. All previous examination questions that are still relevant can be provided on request by
students.
Should you obtain any previous examination papers from elsewhere, we advise you not to focus on them
as a way of understanding the content of the course, because examination papers may change from
year to year. To concentrate only on previous examination papers will not guarantee a pass. You must
be able to answer questions on all the prescribed work and study outcomes.
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FREQUENTLY ASKED QUESTIONS
The myStudies@Unisa brochure contains an A-Z guide of the most relevant study information.
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SOURCES CONSULTED
Lipczynski, J, Wilson, J & Goddard, J. 2009. Industrial organization: competition, strategy,
policy. 3rd edition. Harlow, UK: Prentice Hall.
Pindyck, RS & Rubinfeld, DL. 2013. Microeconomics. 8th edition. Upper Saddle River, NJ:
Prentice Hall.
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CONCLUSION
Microeconomics is an interesting course and equips you with skills that you can apply in so
many economic settings as explained in the introduction. This course however requires an
understanding of basic mathematics and calculus and so students should ensure that they have
a good appreciation of these techniques if they wish to do well in the course. The library has a
number of mathematics for economist textbooks that can be consulted for this purpose.
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ADDENDUM
No additional information is currently available for the module.
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