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

Question 26:

• JAMB 1985

In the table, the marginal cost when output is two, units is

A. 16.00
B. 20.00
C. 36.00
D. 40.00
E. 48.00

Question 27:

• JAMB 1986

A firm is at its optimum size when?

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

Question 28:

• JAMB 1986

The revenue accruing to the seller of commodity X as a result of a fall in price will

A. Increase `
B. Fall
C. First fall but will increase later
D. Remain unchanged

Question 29:

• JAMB 1987

The shut-down point for a firm in the short run is the output at which?

A. The pricr of the product is lowest
B. Marginal Cost is constant
C. Average Variable Cost is not covered
D. Average Cost is minimum

Question 30:

• JAMB 1987

In the long run a firm will leave an industry if price?

A. Does not cover at at least Average Total Cost
B. Is not equal to Marginal Cost
C. Is higher than Average Varriable Cost
D. Is not at least equal to the minimum of Marginal Cost curve