JAMB Economics Past Questions & Answers - Page 262

1,306.

If a total cost curve is plotted, marginal cost can be illustrated by the

A.

Slope of the tangent to the curve at any given output

B.

U-shaped curve cutting the total cost curve at its lowest point

C.

Straight line from the origin to the mid-point of the curve

D.

Straight line cutting the curve at its highest point

Correct answer is B

No explanation has been provided for this answer.

1,307.

In a small scale business, the fixed cost is N5,000, variable cost is N15,000 and the output is 500 units. What will be the unit cost of the goods?

A.

N400.00

B.

N80.00

C.

N40.00

D.

N20.00

Correct answer is C

The unit cost of production is gotten by dividing the total cost by the output.

 

1,308.

External dis-economies of scale result from excessive growth of

A.

The whole industry

B.

Some sectors of the industry

C.

External factors

D.

Internal factors

Correct answer is C

No explanation has been provided for this answer.

1,309.

The condition for equilibrium price and quantity under perfect competition is

A.

MC = AR = TR

B.

TC =AR = P

C.

MC = AR = P

D.

MC = AR = TC

Correct answer is C

No explanation has been provided for this answer.

1,310.

In a free market system, trading can only take place when the

A.

Market is not working effectively

B.

Equilibrium price is attained

C.

Price of a commodity tends to attract consumers

D.

Consumer's sovereignty is lacking

Correct answer is B

No explanation has been provided for this answer.