Post Utme Economics Past Questions and Answers

Question 46:

Which of the following is NOT part of the fixed cost of a firm

A. Interest on loans
B. Rent on buildings
C. Depreciation reserves
D. Management expenditure
E. Wages

Question 47:

Which of the following is used to describe a payment representing a surplus in excess of transfer earnings?

A. Interest rates
B. Opportunity costs
C. Economic rent
D. Indirect costs
E. Wages

Question 48:

A perfectly competitive firm produces the most profitable output where its ____________

A. Marginal revenue equals average cost
B. Price equals average cost
C. Price equals marginal cost
D. Marginal cost equals marginal revenue
E. Average revenue equals average cost

Question 49:

Advertising is the main technique used for effecting in a monopolistic competition ____________

A. Market segmentation
B. Product differentiation
C. Price
D. Profit
E. Supply

Question 50:

Output of a monopolist is usually determined at a point where ____________

A. P=M C
B. M R=M C B beg
C. A R=A C
D. Marginal cost is rising
E. Marginal revenue is rising