passwella.
Menu

JAMB Economics 2004 Question 49

Question 49

Theory of Costs and Revenue

In a textile factory, the cost of cotton used is a typical example of

  1. A.an average cost
  2. B.a variable cost
  3. C.a total cost
  4. D.a fixed cost
Show the answer and explanation

Answer: B (a variable cost)

Explanation

The amount of cotton used rises and falls with output, so its cost is a variable cost.