Question 791:

• JAMB 1986

Under normal circumstances the concept of consumers sovereignty implies that

A. The consumer and not the producer owns the means of production
B. The producer and not the consumer determines what is to be produced
C. The consumer and not the producer determines what is to be produced
D. Both the consumer and the producer determines what should be produced

Question 792:

• JAMB 1986

A firm is at its optimum size when?

A. It produce the greatest output at a minimum cost
B. It has a motive to increase output
C. Marginal cost equals marginal revenue
D. Marginal cost is less than marginal revenue

Question 793:

• JAMB 1986

The degree of specialization is limited by the

A. Avalibility of specialized skills and machinery
B. Marginal cost exceeding marginal revenue
C. Extent of the market
D. Disadvantage of standardization

Question 794:

• JAMB 1986

Production in Economics can be defined as the

A. Totality of producing, buying and consuming
B. Transformation of raw materials and services in order to provide ultimate utility
C. Transformation of raw materials and services in order to make maximum profit
D. Production of goods and services for consumption

Question 795:

• JAMB 1986

A firm achieves least cost in production by substituting factors until

A. Their factor prices are equal
B. Their marginal-physical products are each equal to their factor prices
C. Their marginal-physical products are each zero
D. The ratio of their marginal-physical products equals the ratio of their prices