Scale of Production - Jamb Economics Past Questions and Answers

Question 21:

• JAMB 2001

Internal economies of scale are expected to bring about?

A. An increase in short-run average cost
B. An increase in long-run average cost
C. A decrease in long-run average cost
D. A decrease in short-run average cost

Question 22:

• JAMB 2001

The long run is a period during which a firm?

A. Sells inputs to purchase fixed assets
B. Varies all its inputs
C. Sources all its inputs from within
D. Replaces all its inputs

Question 23:

• JAMB 2002

The benefits that accrue to a firm as a result of an improvement in the industry it belongs to are called?

A. Internal economies of scale
B. Economies of scale
C. Market economies
D. External economies

Question 24:

• JAMB 2005

Long-run production is called

A. Diminsihing returns to scale
B. Returns to scale
C. External economies of scale
D. Economies of scale

Question 25:

• JAMB 2007

A characteristic of the linear production function is that

A. The percentage change in inputs change exceeds output
B. Output and all inputs change by the same percentage
C. The percentage change in output is greater than one
D. The percentage change in output is less than one