The concepts of cost - Jamb Economics Past Questions and Answers

Question 16:

• JAMB 1988

Which of the following is TRUE at the quantity of output where Average Cost (AC) per unit has reached its minimum level?

A. AVC=FC
B. MC=AVC
C. MC=AC
D. AC=AFC

Question 17:

• JAMB 1990

At the point of profit maximization by a firm, marginal cost is?

A. Minimum
B. Falling
C. Constant
D. Rising

Question 18:

• JAMB 1991

At any given level of output, the total cost of a firm equals the?

A. Marginal cost plus the average cost
B. Fixed costs less its varriable cost
C. Average cost multiplied by variable costs
D. Economic costs multiplied by variable costs

Question 19:

• JAMB 1991

At any given level of output, a firm's total variable cost equals ?

A. Total cost less marginal cost
B. Total cost less total fixed costs
C. Total cost less average cost
D. Average variable cost and marginal cost

Question 20:

• JAMB 1991

Consider the following diagram where XYZ represents the average curve of a firm. XY shows that as out put increases the average declines. However, this decline cannot continue indefinitely because

A. Managerial economies
B. Indivisibilities
C. The extent of the market
D. The pooling of dissimilar risks