ACTIVITY FOR DYNAMICS OF MARKETS
Give ONE term for each of the following descriptions. Write only the term next to the question
number (1.1 – 1.6) in the ANSWER BOOK. Accronyms, abbreviations and examples will NOT
be accepted
1.1 An arrangement between businesses with the aim of limiting competition
1.2 Buyers and sellers are kept informed about market conditions
1.3 A market where no single buyer or seller has a noticeable influence on the price of a good
1.4 A situation where sellers accept the prevailing market price
1.5 There are no restrictions that stops the free movement of buyers, sellers, and producers
1.6 Products that are identical and standardised
(6 x 1) (6)
Study the table below and answer the questions that follow:
5.1 Write down another term for quantity. (1)
5.2 At what quantity will the producer earn maximum revenue? (1)
5.3 Briefly describe the term marginal revenue. (2)
5.4 Explain the relationship between the AR and MR. (2)
5.5 Determine the missing values A and B. Show all your calculations. (2 x 2) (4)
[10]
5.6 Briefly explain 4 characteristics of Perfect Market (8)
5.7 Show differences between Implicit cost and Explicit cost (8)