Fixed cost - Jamb Economics Past Questions and Answers

Question 1:

• JAMB 2019

A demand which gives rise to the reverse of the law of demand is__________

A. Derived demand
B. Joint demand
C. Abnormal demand
D. Composite demand

Question 2:

• JAMB 1999

A characteristic of the average fixed cost is that, it?

A. Rises and falls faster than the marginal cost
B. Is U-shaped and intersects the price axis
C. Is always higher than the average variable cost
D. Falls continuously but is never equal to zero

Question 3:

• 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 4:

• 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

Question 5:

• JAMB 2009

As the level of output increases, the average fixed cost of a firm will

A. Continue to decrease
B. Remain unchanged
C. Continue to increase
D. Be equal to the total cost