WAEC Past Questions and Answers - Page 2794

The supply of light could be met using a candle, lantern, and gas lamp is an example of joint supply. This is because the three products are produced together and cannot be produced separately.

In joint supply, two or more products are produced from the same input. The products are said to be jointly supplied because they are produced simultaneously and cannot be produced separately.

For example, in the case of the supply of light, the three products are candles, lanterns, and gas lamps. These products are produced from the same input, which is fuel. The products cannot be produced separately because they all require fuel to be produced.

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.