Short-run and long-run costs - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1987

The shut-down point for a firm in the short run is the output at which?

A. The pricr of the product is lowest
B. Marginal Cost is constant
C. Average Variable Cost is not covered
D. Average Cost is minimum

Question 7:

• JAMB 1987

In the long run a firm will leave an industry if price?

A. Does not cover at at least Average Total Cost
B. Is not equal to Marginal Cost
C. Is higher than Average Varriable Cost
D. Is not at least equal to the minimum of Marginal Cost curve

Question 8:

• JAMB 1991

At any given level of output, a firm's total variable cost equals ?

A. Total cost less marginal cost
B. Total cost less total fixed costs
C. Total cost less average cost
D. Average variable cost and marginal cost

Question 9:

• JAMB 1991

The excess profit made by the firm in the short-run is represented by

A. ORTZ
B. OPVY
C. ORTW
D. ORSX

Question 10:

• JAMB 1991

The long-run equilibrium price and quantity for the firm are respectively

A. OP,OY
B. OR,OZ
C. OR,OX
D. OQ,OZ