Production and Costs
GCE Economics
10 Production and Costs practice questions covering everything you need for GCE.
Drill Production and Costs →Sample Production and Costs questions
a) Distinguish between the short run and the long run in production theory. (4 marks) b) Explain the Law of Diminishing Returns and state the three stages of production associated with it. (8 marks) c…
a) Define the following cost concepts as used in production: i) Fixed Cost ii) Variable Cost iii) Marginal Cost (6 marks) b) Explain THREE differences between short-run costs and long-run cos…
A firm produces 500 units of output at a total cost of ₦250,000. If the fixed cost is ₦50,000, what is the average variable cost per unit?
The law of diminishing returns states that as more units of a variable factor are added to a fixed factor, beyond a certain point, the:
Economies of scale occur when a firm experiences:
If a firm's marginal cost curve is below its average total cost curve, the average total cost is:
A firm operates in the long run with labour and capital as inputs. If it doubles both inputs and output exactly doubles, the firm is experiencing:
A manufacturing company has the following cost data for a week: Total revenue = ₦800,000; Explicit costs = ₦600,000; Implicit costs = ₦150,000. What is the firm's economic profit?
The following data relate to a firm's production: Fixed cost = ₦120,000; Variable cost at 300 units = ₦180,000; Variable cost at 301 units = ₦181,500. What is the marginal cost of the 301st unit?
Which of the following best describes the short run in production theory?