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

Question 56:

• JAMB 1995

The opportunity cost of the use of productive resources which a producer owns and so does not pay constitutes?

A. A fixed cost
B. An implicit cost
C. A variable cost
D. A prime cost

Question 57:

• JAMB 1995

Both in the short run and in the long run, a firm maximizes its profits when?

A. MC = MR
B. AC = MC
C. AVC = AC
D. MC = AVC

Question 58:

• JAMB 1997

The type of cost which has to be covered for a firm to continue production in the short-run is the?

A. Overhead cost
B. Fixed cost
C. Marginal cost
D. Average variable cost

Question 59:

• JAMB 1997

In the diagram below, the curve which represents firm's short-run average variable cost is curve

A. L
B. Ll
C. Lll
D. IV

Question 60:

• JAMB 1998

The short-run period in production is defined as a period when?

A. There is at least one fixed factor
B. All costs of production must be covered
C. The output cannot be varied
D. Current output is not profitable