WAEC GCE Nov/Dec 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 332996
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If a firm retrenches some of its factory workers its

Economics
WAEC 2023

If a firm retrenches some of its factory workers its

  • A. average fixed cost may increase
  • B. variable cost will decline
  • C. marginal cost may increase
  • D. fixed cost is likely to increase
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WAEC GCE Nov/Dec 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 332996
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Correct Answer: Option B
Explanation

If a firm retrenches some of its factory workers, its variable cost will decline. This is because variable costs are costs that vary with the level of output. When the number of workers is reduced, the amount of variable costs will also be reduced.


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WAEC GCE Nov/Dec 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 332996
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC GCE Nov/Dec 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 332996
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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