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

Question 41:

• JAMB 1991

The long-run equilibrium price and quantity for the firm are respectively

A. OP,OY
B. OR,OZ
C. OR,OX
D. OQ,OZ

Question 42:

• JAMB 1992

For an economy which last year produced only two commodities X and Y, the real cost of the quantity of X which it produced can be measured by the?

A. Amount of X it could not produced
B. Amount of Y it produced
C. Total amount of Y it could have produced
D. Extra amount of Y it could have produced

Question 43:

• JAMB 1992

BY definition, variable cost (VC) is related to total costs (TC) and fixed costs (FC) by the equation?

A. VC =TC + FC
B. VC = TC - FC
C. VC = TC/FC
D. VC = (TC)(FC)

Question 44:

• JAMB 1992

The U-shape of the long run average cost curve can be explained by the?

A. Law of increasing returns
B. Law of constant returns
C. Law of diminishing returns
D. Concepts of economies and diseconomies of scale

Question 45:

• JAMB 1992

A firm with marginal cost equals to its marginal revenue will produce the equilibrium output if it is in?

A. Pure competition only
B. Pure monopoly only
C. Monopolistic competition only
D. Any type of market