Concepts Of Cost Jamb Economics Past Questions
Question 6
If the short-run cost curve of a firm is U-shaped, the marginal and average cost are equal where the
- A. average variable cost is minimum
- B. marginal cost is falling
- C. average cost is minimum
- D. average fixed cost is falling
Question 7
The shape of the long-run average cost curve is best explained by the
- A. law of diminishing returns
- B. law of returns to scale
- C. cost of fixed inputs
- D. cost of variable inputs
Question 8
Short-run period in production is a period too short for a firm to be able to change its
- A. scale of operation
- B. total revenue
- C. total outputs
- D. variable inputs
Question 9
A normal supply curve is usually positively sloped because the relationship between
- A. price and supply is positive
- B. demand and price is positive
- C. supply and price is negative
- D. price and demand is negative
Question 10
Given the cost function C = 160 + 36Q, what is the average cost at 20 units of output?
- A. N720.00
- B. N216.00
- C. N44.00
- D. N880.00
