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

Question 81:

• JAMB 2004

In a textile factory, the cost of cotton used is a typical example of

A. An average cost
B. A variable cost
C. A fixed cost
D. A total cost

Question 82:

• JAMB 2005

For a firm to break even in the long run, the marginal cost curve must cut the

A. Average variable cost curve at its higest point
B. Average cost cure at its lowest point
C. Average cost curve at its lowest point
D. Total cost cure at its lowest point

Question 83:

• JAMB 2005

An example of a long-run cost of a firm is

A. Fuel and maintenace cost
B. The planned size of plant equipment
C. The existing size of plant and equipment
D. Rent on buildings

Question 84:

• JAMB 2006

A rising short-run average cost is a result of

A. Economies of scale
B. Falling marginal costs
C. Diminishing returns
D. Rising fixed costs

Question 85:

• JAMB 2006

If the short-run cost curve of a firm is U-shaped, the marginal and average cost are equal where the

A. Average variable cost is minimum
B. Marginal cost is falling
C. Average cost is minimum
D. Average fixed cost is falling