Waec Economics Past Questions and Answers

Question 1811:

• WAEC 2020

A large firm may experience diseconomies of scale if there is ____________

A. Difficulty in coordinating decisions
B. Division of labor in production
C. Employment of more specialist
D. Decrease in the cost of production

Question 1812:

• WAEC 2020

Increasing returns to scale suggests that ____________

A. A firm can make a profit by reducing output
B. A firm can make more profit by increasing output
C. As the producer reduces the quantity of raw materials used, the marginal product will double
D. As the producer increases the quantity of raw materials used, the marginal product will fall

Question 1813:

• WAEC 2020

One feature of the average fixed cost is that it ____________

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

Question 1814:

• WAEC 2020

If the average fixed cost (AFC) of producing 5 bags of rice is $20.00, the average fixed cost of producing 10 bags will be ____________

A. $2.00
B. $4.00
C. $10.00
D. $20.00

Question 1815:

• WAEC 2020

The table below shows the total revenue schedule of a firm. Use the information to answer the question that follows

Output (units)	50	60	70	80	90
Total revenue (TR) $	85	102	119	136	153

What is the unit price of the firm's output

A. $10.00
B. $2.70
C. $2.00
D. $1.70