Watch the video lesson below and answer the questions that follows. (Post your answer into the comment box below this post) NOTE: The correction will be posted soon.
Cost Concept Video Lesson.
Cost Concept JAMB Past Question Practice
Attempt the Questions below. Post your answer into the comment box, the correction will be posted soon.
1. A company’s expenditure on raw materials is regarded as?
- A. explicit cost
- B. implicit cost
- C. prime cost
- D. average cost
2. If additional unit of a variable factor input causes a fall in the marginal product, this implies that
- A. Total product starts declining
- B. Average product has become zero
- C. Diminishing returns has set in
- D. Increasing returns is operating
3. The additional cost incurred by producing an additional unit of output is known as
- A. Fixed cost
- B. Total cost
- C. Average cost
- D. Marginal cost
4. Average product is less than marginal product when
- A. there is constant returns to scale
- B. there is increasing returns to scale
- C. there is decreasing returns to scale
- D. diminishing returns set in
5. From the graph above, R represents
- A. marginal cost
- B. total cost
- C. variable cost
- D. fixed cost
Post your answer into the comment box below, the correction will be posted soon.