The concepts of cost - Jamb Economics Past Questions and Answers

Question 36:

• JAMB 2003

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

A. ₦3.00
B. ₦4.00
C. ₦60.00
D. ₦120.00

Question 37:

• JAMB 2003

The long-run average cost curve is called a planning curve because it shows what happens to costs when

A. A bigger size of plant is built
B. Differents sizes of plants are built
C. Variable inputs are increased
D. Fixed factors are increased

Question 38:

• JAMB 2004

Given the cost function C = 160 + 36Q, what is the average cost at 20 units of output?

A. N720.00
B. N216.00
C. N44.00
D. N880.00

Question 39:

• JAMB 2004

In a textile factory, the cost of cotton used is a typical example of

A. An average cost
B. A variable cost
C. A fixed cost
D. A total cost

Question 40:

• JAMB 2007

If the total fixed cost is the same regardless of output, the average fixed cost will be

A. Increasing
B. Maximum
C. Minimum
D. Decreasing