Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 1

In the short run,a monopoly uses both fixed and variable inputs to produce its output. Draw a diagram illustrating a monopoly breaking even. Then alter your graph to show why,if the price of using a fixed input rises,there will be no change in the monopoly's short-run equilibrium price or quantity. (Hint: Which curves shift if the price of a fixed input rises?)