Open Word and answer the following questions. Save the document and print it when you are done.
1. What happens to the short-run supply curve if wages rise? Explain. Use Word's Drawing Tools to create a graph depicting your answer.
2. What happens to the inverse short-run supply curve if wages rise? Explain. Use Word's Drawing Tools to create a graph depicting your answer.
3. What happens to the short-run supply curve if the rental rate of capital increases? Explain.
4. What happens to the short-run supply curve if the price increases? Explain.
5. Suppose a firm is off its short-run supply curve, but at a point where MR = MC. Use Word's Drawing Tools to a draw the profit function for this situation and label a point Z that meets the supposed conditions.