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

Question 31:

• JAMB 1988

Total fixed cost measures the cost of?

A. All plant and machinery
B. All assets where quantity cannot be varied in the short run
C. All assets upon which the firm has control
D. Prooerty owned by the firm

Question 32:

• JAMB 1988

Which of the following is TRUE at the quantity of output where Average Cost (AC) per unit has reached its minimum level?

A. AVC=FC
B. MC=AVC
C. MC=AC
D. AC=AFC

Question 33:

• JAMB 1990

A firm achieves least-cost in production by substituting factors until?

A. Their prices are equal
B. The ratio of their marginal -physical-products equals the ratio of their prices
C. Their marginal -physical-products are each equal to their factor prices
D. Their marginal -physical-products are each equal to zero

Question 34:

• JAMB 1990

At the point of profit maximization by a firm, marginal cost is?

A. Minimum
B. Falling
C. Constant
D. Rising

Question 35:

• JAMB 1991

At any given level of output, the total cost of a firm equals the?

A. Marginal cost plus the average cost
B. Fixed costs less its varriable cost
C. Average cost multiplied by variable costs
D. Economic costs multiplied by variable costs