WAEC Economics Past Questions & Answers - Page 11

A monopolist may enjoy abnormal profit only if its price exceeds average total cost. This is because a monopolist is the only producer in the market, and they can therefore set the price of their product. If the price exceeds average total cost, the monopolist will be making a profit.

If the government stops subsidy on cocoa production, the supply curve of cocoa will shift to the left. This is because the subsidy was making it cheaper to produce cocoa, so when the subsidy is removed, the cost of production will increase. As a result, fewer cocoa beans will be supplied at any given price.

The demand for a factor input as a result of the demand for its output is known as derived demand. This is because the demand for the factor input is derived from the demand for the final product that the factor input is used to produce.

For example, the demand for labor is derived from the demand for goods and services that are produced by labor. If the demand for goods and services increases, then the demand for labor will also increase.

Non-renewable natural resources are those that cannot be replaced once they are used up. Coal is a fossil fuel that is formed from the remains of plants and animals that lived millions of years ago. It takes millions of years to form coal, so it is a non-renewable resource.

Competitive goods means goods and/or services that meet the same buyer or customer needs as one or more goods and /or services offered by a member or any of its affiliates. An increase in the price of commodity X led to a fall in the supply of commodity Y. Commodities X and Y are competitive supply.