The concepts of cost - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 2015

The relationship between the cost of living and standard of living is

A. A rise in cost of living gives a corresponding rise in standard of living
B. A lower cost of living give a higher standard of living
C. A lower cost of living give a lower standard of living
D. None of the above

Question 7:

• JAMB 2014

The short-run average variable cost of a firm will rise owing to

A. The expansion of factory space
B. The building of new warehouse
C. An increase in the cost of labour
D. An increase in the salaries of directors

Question 8:

• JAMB 2014

Given that FC = N500, VC = N1,500, and Q = 50 units. Find the average cost of the product.

A. N30
B. N40
C. N10
D. N20

Question 9:

• JAMB 2014

Rent and administrative expenses are examples of

A. Average fixed costs
B. Average variable costs
C. Fixed costs
D. Variable costs

Question 10:

• JAMB 1978

Marginal cost is

A. Lowest cost of producing goods
B. The cost of production of the most efficient firm in the industry
C. Cost of production of the most inefficient firm in the industry
D. The cost of production of the last or extra unit of goods produced by a firm
E. The cost of production at which the minimum profit is obtained by a firm