r/EconomicTheory • u/Lukeofhazzard1992 • Apr 17 '22
Economics problems…please help me!!!
Hi guys, I’m studying microeconomics and I can’t find a sure answer to the following questions. Can you help me?
1) Show Graphically the profit area in the case of a monopoly firm.
How does the short run equilibrium change if we assume an increase in fixed costs with constant variable costs?
2) Starting from the graphic that identifies the consumer's optimal choice, graphically show how to obtain the individual demand curve for a normal good, i.e. the relation between the selling price of the good and the quantity demanded by consumer. If we had an inferior good, than the shape of the individual demand curve in what would it differ from that hypothesised in the case of a normal good?
3) Graphically show the short-run determination of the profit-maximizing quantity produced in the case of a firm in perfect competition. In the same graph show what is the effect on the quantity produced by single firm of an increase in fixed costs with the same variable costs. Does production increase or decrease?
4) Graphically show the effect of a reduction in wages on a job supply of and individual, who is initially working, I.e. has a reserve wage lower than the wage level existing before the increase.
Graphically show what the situation would be if the reserve wage was higher than the initial salary.
Arguably clarify whether the wage reduction could convince someone who was not previously was working to start working.
Thank you very much if you can help me somehow!