UTME Questions on Theory of Cost in Economics-LS11

Given that FC = N500, VC = N1,500, and Q = 50 units. Find the average cost of the product.

N30

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N40

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N10

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N20

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Rent and administrative expenses are examples of

Average fixed costs

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Average variable costs

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Fixed costs

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Variable costs.

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Marginal cost is

Lowest cost of producing goods

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The cost of production of the most efficient firm in the industry

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Cost of production of the most inefficient firm in the industry

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The cost of production of the last or extra unit of goods produced by a firm

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If wage rate is less than the average revenue product, the firms would be earning________

Loss

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Super normal profit

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Normal profit

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Higher revenue

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2. The determination of wages in a labour market depends on the_______

Government

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People

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Interaction between demand and supply of labour

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Economy

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Consider the following figures which refer to a firm’s production department during one week:

Wage bill â‚¦6,000, Rent, Rates, Depreciation â‚¦200, raw materials â‚¦800, Power â‚¦300.
Total variable costs incurred during the week are

N7,300

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₦7,100

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N1,300

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N1,100

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In the long run, all production factors are____________

Variable

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Fixed

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Semi-variable

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Semi-fixed

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A company’s expenditure on raw materials is termed as_______?

Prime cost

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Explicit cost

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Average cost

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Implicit cost

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The relationship between the cost of living and standard of living is
A rise in cost of living gives a corresponding rise in standard of living

A rise in cost of living gives a corresponding rise in standard of living

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A lower cost of living give a higher standard of living

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A lower cost of living give a lower standard of living

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None of the above

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Revenue can be expressed as

Total Profit made after sales

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Amount of goods produced

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Total money realized from sales

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Amount spent on purchases

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UTME Questions on Theory of Cost in Economics-LS11

UTME Questions on Theory of Cost in Economics-LS11

QEFAS PREP December 1, 2023

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