Theory of Costs and Revenue - Jamb Economics Past Questions and Answers

Question 46:

• JAMB 1992

In the diagram, the profit maximizing output is

A. Q₁ while 1 = AC and II = MC
B. Q₁, while l = MC and ll = AC
C. Q₂, while l = MC and ll AC
D. Q₃, while l = AC and ll = MC

Question 47:

• JAMB 1992

\(\begin{array}{c|c}
\text{Quantity of singlets} & \text{Short run total costs(N)} \\
0 & 1,000 \\
10 & 1,200 \\
20 & 1,400 \\
30 & 1,600 \\
40 & 1,800 \\
\end{array}\)
The short run total costs for different levels of output for a firm producing singlets are shown above. Calculate the variable cost per unit at an output of 20.

A. N1000
B. N400
C. N70
D. N20

Question 48:

• JAMB 1993

In the theory of production and cost, the average total cost of a firm is minimized when the marginal cost curve cuts the average total cost curve at its?

A. Lowest point
B. Middle point
C. Maximum point
D. Downward slopping section

Question 49:

• JAMB 1993

A firm faces diminishing returns when its?

A. Total output diminishes
B. Average output diminishes
C. Marginal output diminishes
D. Marginal revenue diminishes

Question 50:

• JAMB 1993

Given an output of 3 units, the average is

A. N16.00
B. N18.00
C. 20.00
D. 24.00