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

Question 76:

• JAMB 2003

Short-run period in production is a period too short for a firm to be able to change its

A. Scale of operation
B. Total revenue
C. Total outputs
D. Variable inputs

Question 77:

• JAMB 2003

The long-run average cost curve is called a planning curve because it shows what happens to costs when

A. A bigger size of plant is built
B. Differents sizes of plants are built
C. Variable inputs are increased
D. Fixed factors are increased

Question 78:

• JAMB 2004

At the maximum point of the total product curve of a firm, marginal revenue is

A. Decreasing
B. Increasing
C. Constant
D. Zero

Question 79:

• JAMB 2004

Given the cost function C = 160 + 36Q, what is the average cost at 20 units of output?

A. N720.00
B. N216.00
C. N44.00
D. N880.00

Question 80:

• JAMB 2004

A firm operating at full capacity will experience rising short-run total costs when

A. Prices of its variable inputs rise
B. Prices of its variable inputs fall
C. There is a change in management
D. Labour productivity increases