Scale of Production - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1980

If a firm doubles its output and its cost increase by 60%, the firm is experiencing

A. Increase cost
B. Economies of scale
C. Decreasing returns
D. Decreasing cost
E. None of the above

Question 7:

• JAMB 1981

External economies are

A. The advantage accuring to a firm as a result of its expansion
B. The advantages accuring to one firm as a result of the existence of other firms in the same locality
C. Benefits derived by a firm as a result of its own individual policy
D. Reaped only by agricultural firms
E. Bound to increase the costs of production whatever the circumstances

Question 8:

• JAMB 1984

The advantages that accrue to a firm as the size of the firm increases are known as

A. External diseconomies
B. Internal returns to scale
C. Internal economies
D. Internal diseconomies
E. Constant returns to scale

Question 9:

• JAMB 1986

Which of the following is an external economy derived by a firm?

A. Low cost opportunities enjoyed by being in a place where other producers concentrate
B. Technical economics enjoyed by varying the factors of production
C. Economics of management by putting administrators where the are most efficient
D. Marketing advantages attained through preferential treatment in the purchase and distribution of produce

Question 10:

• JAMB 1988

Development outside a given firm which reduce the firm costs are called?

A. Internal economies
B. External economies
C. External diseconomies
D. Optimum effects