Average cost - Jamb Economics Past Questions and Answers

Question 11:

• JAMB 1999

Given that the total fixed cost is N1,000, total variable cost N2,500 and the output, 100 unit.
Find the average total cost of producing one units?

A. N 60
B. N 45
C. N 35
D. N 30

Question 12:

• JAMB 2002

As a firm increases its output, the average fixed cost?

A. Tends to rise continuously
B. Remains constant
C. Rises and then falls
D. Tends to decreased continuously

Question 13:

• JAMB 2003

\(\begin{array}{c|c} \text{Out put produced per day (Units)} & \text{Fixed cost per day (N)} & \text{Total cost per day (N)} \\ \hline 20 & 60 & 100 \\ \hline 30 & 60 & 120 \\ \hline 40 & 60 & 130 \\ \hline 50 & 60 & 135 \\ \hline 60 & 60 & 150 \\ \hline 70 & 60 & 170 \\ \hline 80 & 60 & 190\end{array}\)
At 60 units of output, the AVC is

A. ₦2.50
B. ₦1.50
C. ₦90.00
D. ₦150.00

Question 14:

• JAMB 2003

The long-run average cost curve is called a planning curve because it shows what happens to costs when

A. A bigger size of plant is built
B. Differents sizes of plants are built
C. Variable inputs are increased
D. Fixed factors are increased

Question 15:

• JAMB 2004

Given the cost function C = 160 + 36Q, what is the average cost at 20 units of output?

A. N720.00
B. N216.00
C. N44.00
D. N880.00