WAEC Past Questions and Answers - Page 3174

15,866.

Indigenization policy is a measure aimed at

A.

Privatizing the existing business owned by the state

B.

Commercializing state owned businesses

C.

Reducing foreign economic domination

D.

Making the indegenes managing directors of businesses

Correct answer is C

Indigenization policy is a deliberate government policy aimed at replacing foreign investors and personnel in certain industries with indigenes or the natives of a country that is, excluding foreign participation in certain productive activities.

15,867.

In a partnership, the conduct of members is guided by

A.

A memorandum of understanding

B.

The article of partnership

C.

An article of association

D.

A partnership constitution

Correct answer is B

Articles of partnership is a voluntary contract between/among two or more persons to place their capital, labor, and skills into business, with the understanding that there will be a sharing of the profits and losses between/among partners.

15,868.

Charging different prices for the same commodity is a feature of a

A.

Perfect competition

B.

Commodity market

C.

Monopolistic competition

D.

Monopoly market

Correct answer is A

In a perfect competitive market, price discrimination occurs when identical goods and services are sold at different prices by the same provider. In pure price discrimination, the seller will charge the buyer the absolute maximum price that he is willing to pay.

15,869.

At which stage of production should a firm shut down? When

A.

AVC=ATC

B.

AVC

C.

AVC>price

D.

AVC=MC

Correct answer is C

A firm will choose to implement a shutdown of production when the revenue received from the sale of the goods or services produced cannot even cover the variable costs of production. In that situation, the firm will  experience a higher loss when it produces, compared to not producing at all. 

As long as price is above average variable costs, the firm should stay in business to minimize its losses in the short run.

15,870.

The necessary condition for a firm to be in equilibrium is that marginal revenue is

A.

Greater than marginal

B.

Equal to marginal

C.

Less than average revenue

D.

Equal to average

Correct answer is B

No explanation has been provided for this answer.