Theory of Costs and Revenue - Jamb Economics Past Questions and Answers

Question 16:

• JAMB 2014

Rent and administrative expenses are examples of

A. Average fixed costs
B. Average variable costs
C. Fixed costs
D. Variable costs

Question 17:

• JAMB 1978

Marginal cost is

A. Lowest cost of producing goods
B. The cost of production of the most efficient firm in the industry
C. Cost of production of the most inefficient firm in the industry
D. The cost of production of the last or extra unit of goods produced by a firm
E. The cost of production at which the minimum profit is obtained by a firm

Question 18:

• 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 19:

• JAMB 1979

When marginal cost equals marginal revenue of products

A. The firms is producing at a loss
B. The firm is at a break-even point
C. The firm is making the least profit
D. The supplementary cost of the firm is highest
E. The firm has maximum profit

Question 20:

• JAMB 1980

From an economic point of view, an activity does not have a cost when

A. Someone else pays for it
B. The returns are greater than the cost
C. The choice involves giving up nothing
D. The government pays for it
E. It is paid for from a gift