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JAMB Economics 2024 Question 16

Question 16

Theory of Costs and Revenue

From the graph above, R represents

Diagram for this question
  1. A.marginal cost
  2. B.total cost
  3. C.variable cost
  4. D.fixed cost
Show the answer and explanation

Answer: B (total cost)

Explanation

T is the horizontal fixed-cost line and M starts from zero, so M is variable cost. R starts at the fixed-cost level and runs parallel above M, so R is total cost (fixed cost + variable cost).