JAMB Economics Past Questions & Answers - Page 57

Short-run is a period where at least one input is fixed while others are variable.

The short-run monopoly sells OM output at MP (OB) price. The total monopoly profits are AP × CA = CAPB is shaded in the diagram.
CAPB indicates an abnormal profit of the monopolist.

Since the buyers or sellers cannot influence the price of goods and services. The Demand and Supply determined the price the firm can sell any quantity it wishes.

The two goods are Independent goods. Therefore, a change in the price of one will have no effect on the other. e.g. refrigerator and bicycle. A change in the price of refrigerator will have no effect on bicycle since they are not related.

A normal demand curve slopes downward from left to right indication. It lower price more will be demand but Abnormal demand curve slopes upward from left to right indications, It higher price more will be demanded which give reverse.

When a group data is involved, cumulative frequency is used. The formula will be: Median=[(N+1)/2]th

  For member of odd number items. That is, where N is odd

  Median=([N/2]th + [N/2 + 1]th)/2

  For member of odd number items. That is, where N is odd

  Solution:

  From the table, there are 20 members as indicated by the cumulative frequency. Since the members are odd (10) the median age will be ([N/2]th + [N/2 + 1]th)/2

  Median=([10/2]th + [10/2 + 1]th)/2

  =(5th + 6th)/2

  The 5th member is 3 and the 6th member is on 3

  Median=(3 + 3)/2

  =6/2

  Median = 3