JAMB Economics Past Questions & Answers - Page 338

1,686.

Technical progress that leads to a reduction in costs results in

A.

An increase in equilibrium price and quantity

B.

A decrease in equilibrium price and quantity

C.

An increase in equilibrium price and decrease in equilibrium quantity

D.

A decrease in equilibrium price and increase in equilibrium quantity

Correct answer is D

No explanation has been provided for this answer.

1,687.

The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continuously, his

A.

Total utility must fall

B.

Marginal utility must fall

C.

Marginal utility may rise even though his total utility is falling

D.

Marginal utility may fall even though his total utility may be rising

Correct answer is B

No explanation has been provided for this answer.

1,688.

A situation in which all inputs are doubled and output also doubles is known as

A.

Constant proportions

B.

Constant returns

C.

Increasing returns to scale

D.

Constant returns to scale

Correct answer is D

No explanation has been provided for this answer.

1,689.

At the point of profit maximization by a firm, marginal cost is

A.

Minimum

B.

Falling

C.

Constant

D.

Rising

Correct answer is D

No explanation has been provided for this answer.

1,690.

Economics of scale operate only when

A.

Marginal cost is falling with input

B.

Average cost is falling with output

C.

Fixed cost is variable

D.

Variable cost is less than fixed cost

Correct answer is B

No explanation has been provided for this answer.