What situations would be good to use context?
It's used to share data that can be considered “global” for a tree of React components,
such as the current authenticated user, theme, or preferred language.
They can be used to avoid passing props through intermediate elements.

If you need to pass a prop down 1 or 2 levels, is context necessary?
No it is not always neccessary.

Can you pass a component instance as a prop to avoid the need for context?
Yes you can by using component composition.

Can you write your own components that accept render props?
Yes.