passwella.
Menu

JAMB Economics 2003 Question 13

Question 13

Theory of Costs and Revenue

Use the table below to answer the question.
Output produced per day (Units) | Fixed cost per day (₦) | Total cost per day (₦)
20 | 60 | 100
30 | 60 | 120
40 | 60 | 130
50 | 60 | 135
60 | 60 | 150
70 | 60 | 170
80 | 60 | 190
The ATC at 30 units of output is

  1. A.₦3.00
  2. B.₦4.00
  3. C.₦60.00
  4. D.₦120.00
Show the answer and explanation

Answer: B (₦4.00)

Explanation

Average total cost = total cost ÷ output = ₦120 ÷ 30 = ₦4.00.