EKN11EB: Assignment II Question 1 1. Pearl Molebatsi is engaged in her favourite part-time -Marketing C-SPAN coverage of the lasted Presidential sex scandal at the Loose Goose micro-puck. Pearl is drinking \"Loosie's Golden\" and eating chocolate brownies and jalapen peppers - her favourite meal. Pearl has R17 to spend. The table below indicates Pearl's from consuming her three favourite foods. \"loosie's Golden\" is R3 a pint. The chocolate brownies cost R2 and the jalapenos are R1 each. Units 1 2 3 4 5 MU of Brownie s 20 18 16 14 12 MU of Jalapeno s 12 10 7 2 0 MU of Loosies Golden 48 45 30 18 15 1.1 How many units of each will Pearl buy to maximise her total pleasure? (show any calculation you may need to make). (12) 1.2 Briefly explain the reasoning behind your answer. (4) 1.3 How many units of each will Pearl buy if she only has R13 to spend? (5) 1.4 What will be her total units if she has only R13 to spend? (4) Question 2 (25) Answer the following questions using the table below: Quantity Produce d 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 Price per Unit R120 R120 R120 R120 R120 R120 R120 R120 R120 R120 Total Revenu e 0 R120 R170 R160 R150 R140 R130 R120 R110 R100 R90 Marginal Revenu e FIRM 1 Total Margina Cost l Cost Profit Margina l Profit ATC R100 R150 R202 R257 R317 R385 R465 R562 R682 R812 FIRM2 R100 R140 R184 R230 R280 R335 R385 R475 R565 2.1. Complete the table for the two firms above. (6) 2.2 What is the profit maximising output for each firm? (4) 2.3 What is the relationship between price marginal cost at the profit maximising level of output for each firm? (6) 2.4 Which firm is in a competitive market and which is a monopolist? How do you know that? (5) 2.5 What is the rand amount of the dead weight loss for the monopolist? Explain your answer (4)