Short-run And Long-run Costs Jamb Economics Past Questions
Question 1
A company's expenditure on raw materials is regarded as?
- A. explicit cost
- B. implicit cost
- C. prime cost
- D. average cost
Question 2
A firm that closes down will still incur
- A. variable cost
- B. fixed cost
- C. total cost
- D. marginal cost
Question 3
In the long-run, a firm must shut down if its average revenue is
- A. greater than average cost
- B. less than average variable cost
- C. equal to the minimum average revenue is
- D. equal to the average cost
Question 4
A firm's average cost decreases in the long-run because of
- A. increasing returns to scale
- B. diminishing average returns
- C. decreasing marginal returns
- D. decreasing average fixed cost
Question 5
The average curve and the marginal curve are U-shaped in the short-run and flatter in the long-run due to________
- A. Economies of scale
- B. Money cost
- C. Opportunity cost
- D. Cost functions
