Scale of Production - Jamb Economics Past Questions and Answers

Question 11:

• JAMB 1989

If the cost of production for a firm continues to increase as it output rises, the firm is said to be experiencing?

A. Large-scale production
B. Profit maximization
C. Economies of scale
D. Diseconomies of scale

Question 12:

• JAMB 1989

The merging of firms engage in different stages of production and marketing is called?

A. External economies of scale
B. Vertical intergration
C. Horizontal intergration
D. Economic unoin

Question 13:

• JAMB 1989

The table gives the various levels of output (Q) and its corresponding total cost of production. (ITC) and total revenue (TR) for a firm. Which output level Q results in maximum profit?

A. 400
B. 500
C. 600
D. 700

Question 14:

• JAMB 1990

Economics of scale operate only when?

A. Marginal cost is falling with input
B. Average cost is falling with output
C. Fixed cost is variable
D. Variable cost is less than fixed cost

Question 15:

• JAMB 1990

A situation in which all inputs are doubled and output also doubles is known as?

A. Constant proportions
B. Constant returns
C. Increasing returns to scale
D. Constant returns to scale