Short-run And Long-run Costs Jamb Economics Past Questions
Question 26
When a firm is reaping economies of large-scale production, it experiences a fall in its?
- A. long-run marginal cost
- B. long-run average cost
- C. long-run total cost
- D. short-run marginal cost
Question 27
In the short-run a firm marginal cost curve above the point of shut-down is its?
- A. demand curve
- B. supply curve
- C. cost curve
- D. supply curve
Question 28
A firm operating at full capacity will experience rising short-run total costs when
- A. prices of its variable inputs rise
- B. prices of its variable inputs fall
- C. there is a change in management
- D. labour productivity increases
Question 29
The output at which total revenue equals total cost is known as?
- A. profit-maximizing output
- B. break even level output
- C. loss-minizing output
- D. least-cost output
Question 30
Which of the following is TRUE at the quantity of output where Average Cost (AC) per unit has reached its minimum level?
- A. AVC=FC
- B. MC=AVC
- C. MC=AC
- D. AC=AFC
