Marginal cost - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1991

Consider the table which shows output (o), total cost (TC)of production and marginal cost (MC) for a firm in a competitive market. Suppose price (P) = N 12, what is the maximum profit the firm can make ?

A. N2000.00
B. 1 200.00
C. 1000.00
D. 400.00

Question 7:

• JAMB 1993

In the theory of production and cost, the average total cost of a firm is minimized when the marginal cost curve cuts the average total cost curve at its?

A. Lowest point
B. Middle point
C. Maximum point
D. Downward slopping section

Question 8:

• 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 9:

• 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