The concepts of cost - Jamb Economics Past Questions and Answers

Question 21:

• JAMB 1991

Consider the table which shows output (o), total cost (TC)of production and marginal cost (MC) for a firm in a competitive market. Suppose price (P) = N 12, what is the maximum profit the firm can make ?

A. N2000.00
B. 1 200.00
C. 1000.00
D. 400.00

Question 22:

• JAMB 1992

For an economy which last year produced only two commodities X and Y, the real cost of the quantity of X which it produced can be measured by the?

A. Amount of X it could not produced
B. Amount of Y it produced
C. Total amount of Y it could have produced
D. Extra amount of Y it could have produced

Question 23:

• JAMB 1992

BY definition, variable cost (VC) is related to total costs (TC) and fixed costs (FC) by the equation?

A. VC =TC + FC
B. VC = TC - FC
C. VC = TC/FC
D. VC = (TC)(FC)

Question 24:

• JAMB 1992

In the diagram, the profit maximizing output is

A. Q₁ while 1 = AC and II = MC
B. Q₁, while l = MC and ll = AC
C. Q₂, while l = MC and ll AC
D. Q₃, while l = AC and ll = MC

Question 25:

• JAMB 1993

In the theory of production and cost, the average total cost of a firm is minimized when the marginal cost curve cuts the average total cost curve at its?

A. Lowest point
B. Middle point
C. Maximum point
D. Downward slopping section