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JAMB Economics 2014 Paper
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© africaexams.com
Question : 12
Total: 49
Given that FC = N500, VC = N1,500, and Q = 50 units. Find the average cost of the product.
N30
N40
N10
N20
Validate
Solution:
Concept:
Average cost is the total cost of production divided by the total output produced.
Explanation:
Total cost
=
FC
+
VC
=
500
+
1500
=
2000
= \text{FC} + \text{VC} = 500 + 1500 = 2000
=
FC
+
VC
=
500
+
1500
=
2000
Average cost
=
Total cost
Quantity produced
=
2000
50
=
40
= \dfrac{\text{Total cost}}{\text{Quantity produced}} = \dfrac{2000}{50} = 40
=
Quantity produced
Total cost
=
50
2000
=
40
Thus, the average cost is N40.
Answer:
B. N40
© africaexams.com
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