Production Theory of Cost and Revenue
A society that operates below the production possibility curve is using its productive resources
What accounts for the 'U-shaped' of the short run average cost (AC) curve?
The law of variable proportions
Increasing returns to scale
Decreasing use of inputs
Changing output during the production period
Manufacturing involves the process of
making goods available
providing finished products
changing items to new states
producing capital goods only
The reward to capital as a factor of production is
Mining is an example of
Given the fixed cost is ₦500.00 variable cost is ₦1500.00 and output is 50units, what will be the average cost of producing one unit?
Which of the following is regarded as fixed cost?
Cost of raw materials
Cost of fuel
Cost of light
Rent on land
If a producer sells 1kg of rice for ₦2.00 and his marginal product is 100kg, what is the highest wage he can pay the marginal labourer?
Which of these does not relate to the law of comparative advantage?
The law of comparative advantage was propounded by David Ricardo
The law stresses the importance of relative efficiency
In order to specialise a country must have absolute advantage
The law is based on opportunity cost principle
The principle if followed, should increase total world output
Which of these factors does not affect revenue allocation in Nigeria?
Needs of an area
Size of the population of an area
Number of industries and land area
Revenue derivable from an area
Development needs of the country