JAMB Economics Past Questions & Answers - Page 188

936.

If a monopolist is incurring short-run losses, this means that his

A.

Selling price is above the short-run marginal cost

B.

Selling price is below the short-run marginal cost

C.

Average revenue is greater than marginal revenue

D.

Average reveune is less than marginal revenue

Correct answer is B

No explanation has been provided for this answer.

937.

The supply curve of a perfectly competitive firm is identical to its

A.

Total cost

B.

Marginal cost

C.

Fixed cost

D.

Variable inputs

Correct answer is B

No explanation has been provided for this answer.

938.

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

Correct answer is B

No explanation has been provided for this answer.

939.

As the level of output increases, the average fixed cost of a firm will

A.

Continue to decrease

B.

Remain unchanged

C.

Continue to increase

D.

Be equal to the total cost

Correct answer is A

No explanation has been provided for this answer.

940.

Which of the following can be deduced from the law of variable proportions when total output is rising?

A.

MP is greater than AP

B.

MP is less than AP

C.

MP is equal to AP

D.

MP is equal to zero

Correct answer is A

No explanation has been provided for this answer.