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UI Post-UTME Economics 2012 (Model questions) past questions and answers

2 questions. Try each one, then open the answer to check yourself and read the explanation.

Question 11

Theory of Costs and Revenue

Use the diagram (MC, ATC and AVC curves) to answer this question. When 20 units of output is produced, TC will be

Diagram for this question
  1. A.₦300
  2. B.₦460
  3. C.₦400
  4. D.₦360
Show the answer and explanation

Answer: A (₦300)

Explanation

At 20 units ATC is at its minimum of ₦15, so TC = 15 × 20 = ₦300.

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Question 12

Theory of Costs and Revenue

Use the diagram (MC, ATC and AVC curves) to answer this question. The average total cost when 20 units are produced is

Diagram for this question
  1. A.₦23.00
  2. B.₦13.00
  3. C.₦15.00
  4. D.₦20.00
Show the answer and explanation

Answer: C (₦15.00)

Explanation

MC cuts ATC at its lowest point, shown at 20 units and ₦15.

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