JAMB Economics 2021 Objective — Question 20
Question 20 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2021 Objective paper, with the correct answer and a full explanation.
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20. If the fixed cost for a firm is 40 while the variable cost per unit is 2, which of the following equation can represent the cost function for the firm a. 42q b. 2q - 40 c. 2q + 40 d. 2q
- A. 42q
- B. 2q - 40
- C. 2q + 40Correct
- D. 2q
Explanation
Total cost = fixed cost + variable cost. Variable cost = 2 x q = 2q, so cost function = 2q + 40.
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