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

Question 91:

• JAMB 2007

An increase in the marginal cost of production causes

A. A downward movement along the supply curve
B. A leftward shift of the supply curve
C. A rightward shift of the supply curve
D. An upward movement along the supply curve

Question 92:

• JAMB 2008

From the graph above , point M shows that MC

A. Cuts AC at its minimum point
B. And AC rises simultaneously
C. Cuts AC at its maximum point
D. Is falling

Question 93:

• JAMB 2009

The short-run supply curve for medical doctors is more likely to be

A. Perfectly elastic
B. Perfectly inelastic
C. Fairly inelastic
D. Fairly elastic

Question 94:

• JAMB 2009

As the level of output increases, the average fixed cost of a firm will

A. Continue to decrease
B. Remain unchanged
C. Continue to increase
D. Be equal to the total cost

Question 95:

• JAMB 2009

The supply curve of a perfectly competitive firm is identical to its

A. Total cost
B. Marginal cost
C. Fixed cost
D. Variable inputs