Scale of Production - Jamb Economics Past Questions and Answers

Question 26:

• JAMB 2010

A firm enjoying economies of scale is said to be

A. Reducing average cost as production increases
B. Benefiting from the activities of other firms
C. Maximizing profits as production increases
D. Having an upward-sloping average cost curve

Question 27:

• JAMB 2011

A firm will experience diseconomies of scale when

A. There are difficulties in coordinating production
B. There is shortage in labour supply
C. The size of market is small
D. There is an increase in the price of raw materials

Question 28:

• JAMB 2013

If a refinery achieves a reduction in cost by purchasing and transporting crude oil in large quantities, it enjoys

A. Economies of scale
B. Specialization
C. Division of labour
D. Diseconomies of scale

Question 29:

• JAMB 2020

Firms are often set up close to each other in order to take advantage of?

A. Supply of skilled labour
B. Agglomeration economies
C. Internal economies of scale
D. External economies of scale

Question 30:

• JAMB 2021

A firm is at its optimum size when ____________

A. It has a motive to increase output
B. It produces the greatest output at a minimum cost
C. Marginal cost equals marginal revenue
D. Marginal cost is less than marginal revenue