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UI Post-UTME Economics 2012 (Model questions) Question 11

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.