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

Question 21:

• JAMB 1982

if AC = Average Cost of production ,
TC = Total Cost of production
VC = Variable Cost of production
FC = Fixed Cost of production
Q = Quantity of goods produced
Then,

A. AC = TC; TC = VC + FC
B. AC = (TC) Q: TC = VC + FC
C. AC = TC; TC = (VC)(FC) Q
D. AC = TC- FC: VC = TC- AC
E. AC = TC ; TC = VC + AC Q

Question 22:

• JAMB 1982

\(\begin{array}{c|c}
\text{Unit of output} & \text{Table cost}\\
\hline
1 & 20 \\
2 & 32 \\
3 & 42 \\
4 & 48 \\
5 & 50 \\
\end{array}\)
in the above table, the marginal cost of the 3rd unit of output is

A. 12
B. 6
C. 10
D. 2
E. 9

Question 23:

• JAMB 1983

Marginal cost curve intersects average cost curve ?

A. From above at its lowest point
B. From below before the lowest point
C. From below at its lowest point
D. From below after the lowest point
E. At zero point

Question 24:

• JAMB 1984

The table above shows the short-run costs of a firm. What is the firm's marginal cost for the third item produced?

A. N350.00
B. N340.00
C. 360.00
D. 370.00
E. 55.00

Question 25:

• JAMB 1985

When total revenue is at a maximum, marginal revenue is?

A. Constant
B. Negative
C. Zero
D. Positive
E. Maximum