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

Question 6:

• JAMB 2018

Consider the following figures which refer to a firm's production department during one week:

Wage bill ₦6,000, Rent, Rates, Depreciation ₦200, raw materials ₦800, Power ₦300.
Total variable costs incurred during the week are

A. ₦7,300
B. ₦7,100
C. ₦1,300
D. ₦1,100

Question 7:

• JAMB 2018

If AC and MC are represented on a graph, the MC curve will cut the AC curve_______

A. At the maximum point on the AC curve
B. At the highest point on the AC curve
C. At the minimum point on the AC curve
D. At the peak

Question 8:

• JAMB 2019

In the long run, all production factors are____________

A. Variable
B. Fixed
C. Semi-variable
D. Semi-fixed

Question 9:

• JAMB 2016

A company's expenditure on raw materials is termed as_______?

A. Prime cost
B. Explicit cost
C. Average cost
D. Implicit cost

Question 10:

• JAMB 2015

The line Y in the diagram represents

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