JAMB Economics Past Questions & Answers - Page 433

2,161.

Full equilibrium under perfect competition requires that?

A.

MC =MR and AC =AR

B.

MC = MR but AR>AC

C.

MR =MC =AR=AC

D.

TR>TC

E.

MR=MC

Correct answer is C

Equilibrium in perfect competition is the point where market demands will be equal to market supply. 

The long-run equilibrium of a perfectly competitive market occurs when marginal revenue equals marginal costs, which is also equal to average total costs.

2,162.

The country will be over populated when

A.

The rate of birth is high

B.

The death rate is low

C.

The growth rate is high

D.

Population is increasing more than resources in the country

E.

More commodities are imported

Correct answer is C

No explanation has been provided for this answer.

2,163.

The quantity supplied of a commodity increases best when

A.

Production increases

B.

Demand increases

C.

Price of the commodity increases

D.

Population of the country increases

E.

More commodities are imported

Correct answer is C

No explanation has been provided for this answer.

2,164.

Opportunity cost is the

A.

Price of scarce goods

B.

Resources required for making a commodity

C.

Cost of luxury goods

D.

Accrual of financial loses by chance

E.

Alternative forgone in other to satisfy a want

Correct answer is E

No explanation has been provided for this answer.

2,165.

Average cost is

A.

The total cost of production

B.

The extra cost of producing one additional unit of output

C.

Cost of producing a unit of output

D.

Variable cost

E.

Overhead cost

Correct answer is C

No explanation has been provided for this answer.