Jamb Economics 1990 Past Questions and Answers

Question 6:

• JAMB 1990

A firm achieves least-cost in production by substituting factors until?

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

Question 7:

• JAMB 1990

Economics of scale operate only when?

A. Marginal cost is falling with input
B. Average cost is falling with output
C. Fixed cost is variable
D. Variable cost is less than fixed cost

Question 8:

• JAMB 1990

At the point of profit maximization by a firm, marginal cost is?

A. Minimum
B. Falling
C. Constant
D. Rising

Question 9:

• JAMB 1990

A situation in which all inputs are doubled and output also doubles is known as?

A. Constant proportions
B. Constant returns
C. Increasing returns to scale
D. Constant returns to scale

Question 10:

• JAMB 1990

The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continuously, his?

A. Total utility must fall
B. Marginal utility must fall
C. Marginal utility may rise even though his total utility is falling
D. Marginal utility may fall even though his total utility may be rising