Search SchoolNGR

Saturday, 18 April 2026
Register . Login

Economics Past Questions and Answers

Topic: The concepts of cost

Jamb Economics Questions - The concepts of cost

Question 41:
Consider the following diagram where XYZ represents the average curve of a firm. XY shows that as out put increases the average declines. However, this decline cannot continue indefinitely because
  • A Managerial economies
  • B Indivisibilities
  • C The extent of the market
  • D The pooling of dissimilar risks
View Answer & Explanation
Question 42:
Consider the table which shows output (o), total cost (TC)of production and marginal cost (MC) for a firm in a competitive market. Suppose price (P) = N 12, what is the maximum profit the firm can make ?
  • A N2000.00
  • B 1 200.00
  • C 1000.00
  • D 400.00
View Answer & Explanation
Question 43:
For an economy which last year produced only two commodities X and Y, the real cost of the quantity of X which it produced can be measured by the?
  • A Amount of X it could not produced
  • B Amount of Y it produced
  • C Total amount of Y it could have produced
  • D Extra amount of Y it could have produced
View Answer & Explanation
Question 44:
BY definition, variable cost (VC) is related to total costs (TC) and fixed costs (FC) by the equation?
  • A VC =TC + FC
  • B VC = TC - FC
  • C VC = TC/FC
  • D VC = (TC)(FC)
View Answer & Explanation
Question 45:
The U-shape of the long run average cost curve can be explained by the?
  • A Law of increasing returns
  • B Law of constant returns
  • C Law of diminishing returns
  • D Concepts of economies and diseconomies of scale
View Answer & Explanation