Economics Practice Test – Theory of Cost and Revenue

Which of the following falls continuously as output expands? (JAMB 1999)

A. Average fixed cost
B. Marginal cost
C. Average variable cost
D. Average cost

In the diagram above, profit is maximised at the output level _____

The short-run in production is the time period when _____ (WASSCE 2019)

A. techniques of production can easily be changed
B. all factors of production are variable
C. at least a factor is fixed while others are variable
D. variable factors cannot be changed

At 60 units of output, the AVC is ______ (JAMB 2003)

In the long-run, a firm must shut down if its avenge revenue is ______

A. greater than average cost
B. less than average variable cost
C. equal to the minimum average cost
D. equal to the average cost.