The Theory of Production - Jamb Economics Past Questions and Answers

Question 136:

• JAMB 2010

If the price of a commodity with elastic demand increases, the revenue accruing to the producer will

A. Double
B. Increase
C. Be constant
D. Decrease

Question 137:

• JAMB 2010

Average product is less than marginal product when

A. There is constant returns to scale
B. There is increasing returns to scale
C. There is decreasing returns to scale
D. Diminishing returns set in

Question 138:

• JAMB 2010

A firm enjoying economies of scale is said to be

A. Reducing average cost as production increases
B. Benefiting from the activities of other firms
C. Maximizing profits as production increases
D. Having an upward-sloping average cost curve

Question 139:

• JAMB 2010

An industry's supply curve is more likely to be elastic when firms are

A. Enjoying free entry and exit
B. Operating at full capacity
C. Operating below capacity
D. Maximizing profits

Question 140:

• JAMB 2010

The primary motive for an individual engaging in production is to

A. Make profit
B. Satisfy basic human wants
C. Redistribute wealth
D. Put inputs into use