The concepts of cost - Jamb Economics Past Questions and Answers

Question 11:

• JAMB 1979

Average cost is

A. The total cost of production
B. The extra cost of producing one additional unit of output
C. Cost of producing a unit of output
D. Variable cost
E. Overhead cost

Question 12:

• JAMB 1982

if AC = Average Cost of production ,
TC = Total Cost of production
VC = Variable Cost of production
FC = Fixed Cost of production
Q = Quantity of goods produced
Then,

A. AC = TC; TC = VC + FC
B. AC = (TC) Q: TC = VC + FC
C. AC = TC; TC = (VC)(FC) Q
D. AC = TC- FC: VC = TC- AC
E. AC = TC ; TC = VC + AC Q

Question 13:

• JAMB 1982

\(\begin{array}{c|c}
\text{Unit of output} & \text{Table cost}\\
\hline
1 & 20 \\
2 & 32 \\
3 & 42 \\
4 & 48 \\
5 & 50 \\
\end{array}\)
in the above table, the marginal cost of the 3rd unit of output is

A. 12
B. 6
C. 10
D. 2
E. 9

Question 14:

• JAMB 1985

In the table, the marginal cost when output is two, units is

A. 16.00
B. 20.00
C. 36.00
D. 40.00
E. 48.00

Question 15:

• JAMB 1988

Total fixed cost measures the cost of?

A. All plant and machinery
B. All assets where quantity cannot be varied in the short run
C. All assets upon which the firm has control
D. Prooerty owned by the firm