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

Question 36:

• JAMB 1991

At any given level of output, a firm's total variable cost equals ?

A. Total cost less marginal cost
B. Total cost less total fixed costs
C. Total cost less average cost
D. Average variable cost and marginal cost

Question 37:

• JAMB 1991

At any given level of output, a firm's total variable cost equals ?

A. Total cost less marginal cost
B. Total cost less total fixed costs
C. Total cost less average cost
D. Average variable cost and marginal cost

Question 38:

• JAMB 1991

Consider the following diagram where XYZ represents the average curve of a firm. XY shows that as out put increases the average declines. However, this decline cannot continue indefinitely because

A. Managerial economies
B. Indivisibilities
C. The extent of the market
D. The pooling of dissimilar risks

Question 39:

• JAMB 1991

Consider the table which shows output (o), total cost (TC)of production and marginal cost (MC) for a firm in a competitive market. Suppose price (P) = N 12, what is the maximum profit the firm can make ?

A. N2000.00
B. 1 200.00
C. 1000.00
D. 400.00

Question 40:

• JAMB 1991

The excess profit made by the firm in the short-run is represented by

A. ORTZ
B. OPVY
C. ORTW
D. ORSX