Post Utme Economics Past Questions and Answers

Question 646:

In the short run horizon of production, ____________

A. All inputs can be varied
B. One input is varied
C. All inputs are fixed
D. One input, at least, is varied

Question 647:

A firm that is running at a loss will continue to produce in the short-run if its ____________

A. \(P>AVC\)
B. \(P=AVC\)
C. \(P<AVC \)
D. \(P eq AVC\)

Question 648:

All of the following are true about Total Product, Marginal Product and Average Product except one ____________

A. When \(T P\) is at the maximum. MP equals zero
B. AP equals MP when MP is at the maximum
C. When TP is falling, MP is negative
D. When TP is at the maximum AP, is positive

Question 649:

Average cost is equal to Marginal cost when ____________

A. Average cost is at the maximum
B. Average cost is at the minimum
C. Marginal cost is at the minimum
D. Marginal cost is at the maximum

Question 650:

Which of the following statements is not true in the long-run

A. Total cost equals variable cost
B. Average cost equals average variable cost
C. Average fixed cost equals zero
D. Average cost is the addition of average fixed cost and Average variable cost