The concepts of cost - Jamb Economics Past Questions and Answers

Question 31:

• JAMB 1999

Which of the following falls continuously as output expands?

A. Average fixed cost
B. Marginal cost
C. Average variable cost
D. Average cost

Question 32:

• JAMB 2000

In a small scale business, the fixed cost is N5,000, variable cost is N15,000 and the output is 500 units. What will be the unit cost of the goods?

A. N400.00
B. N80.00
C. N40.00
D. N20.00

Question 33:

• JAMB 2001

Which of the following is an example of a fixed cost?

A. Fuel cost
B. Electricity bill
C. Rent on building
D. Transportation cost

Question 34:

• JAMB 2002

As a firm increases its output, the average fixed cost?

A. Tends to rise continuously
B. Remains constant
C. Rises and then falls
D. Tends to decreased continuously

Question 35:

• JAMB 2003

\(\begin{array}{c|c} \text{Out put produced per day (Units)} & \text{Fixed cost per day (N)} & \text{Total cost per day (N)} \\ \hline 20 & 60 & 100 \\ \hline 30 & 60 & 120 \\ \hline 40 & 60 & 130 \\ \hline 50 & 60 & 135 \\ \hline 60 & 60 & 150 \\ \hline 70 & 60 & 170 \\ \hline 80 & 60 & 190\end{array}\)
At 60 units of output, the AVC is

A. ₦2.50
B. ₦1.50
C. ₦90.00
D. ₦150.00