The concepts of cost - Jamb Economics Past Questions and Answers

Question 26:

• JAMB 1993

A firm faces diminishing returns when its?

A. Total output diminishes
B. Average output diminishes
C. Marginal output diminishes
D. Marginal revenue diminishes

Question 27:

• JAMB 1998

What is the average total cost when output is 200 units in the table above is

A. N1.00
B. N2.0
C. N1.20
D. N2.40

Question 28:

• JAMB 1999

The downward sloping part of the long-run average cost curve of a firm may be attributable to?

A. Diminishing returns
B. The law of variable proportions
C. Diseconomies of scale
D. Increasing returns to scale

Question 29:

• JAMB 1999

A characteristic of the average fixed cost is that, it?

A. Rises and falls faster than the marginal cost
B. Is U-shaped and intersects the price axis
C. Is always higher than the average variable cost
D. Falls continuously but is never equal to zero

Question 30:

• JAMB 1999

Given that the total fixed cost is N1,000, total variable cost N2,500 and the output, 100 unit.
Find the average total cost of producing one units?

A. N 60
B. N 45
C. N 35
D. N 30