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

Question 66:

• JAMB 2000

In a small scale business, the fixed cost is N5,000, variable cost is N15,000 and the output is 500 units. What will be the unit cost of the goods?

A. N400.00
B. N80.00
C. N40.00
D. N20.00

Question 67:

• JAMB 2000

If a total cost curve is plotted, marginal cost can be illustrated by the?

A. Slope of the tangent to the curve at any given output
B. U-shaped curve cutting the total cost curve at its lowest point
C. Straight line from the origin to the mid-point of the curve
D. Straight line cutting the curve at its highest point

Question 68:

• JAMB 2000

In a price-taking firm, the portion UT above is the firm's

A. Average revenue curve
B. Long-run average cost curve
C. Demand curve
D. Supply curve

Question 69:

• JAMB 2001

Which of the following is an example of a fixed cost?

A. Fuel cost
B. Electricity bill
C. Rent on building
D. Transportation cost

Question 70:

• JAMB 2002

As a firm increases its output, the average fixed cost?

A. Tends to rise continuously
B. Remains constant
C. Rises and then falls
D. Tends to decreased continuously