Production Functions And Returns To Scale - Economics Jamb Past Questions and Answers

Question 16 :

• JAMB 2009

The shape of the long-run average cost curve is best explained by the

A. Law of diminishing returns
B. Law of returns to scale
C. Cost of fixed inputs
D. Cost of variable inputs

Question 17 :

• 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 18 :

• 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 19 :

• JAMB 2011

The law of variable proportions is applicable only

A. In the long-run period
B. To large-scale enterprises
C. To small-scale enterprises
D. In the short-run period

Question 20 :

• JAMB 2012

If all factors are variable in the long run,firms will experience

A. Decreasing returns to scale
B. Increasing returns to scale
C. Diminishing returns
D. Economies of scale