Interactive graphing problems

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1. At 3, 100,000 pizzas were gained and 3000 robots were given up. This is because each pizza is worth 0.030 robots. With limited resources, you have to give up some of one thing to get more of another. Therefore, in choosing to consume 300,000 pizzas instead of 200,000, you weren't able to purchase as many robots.

2. When people act with rational self-interest, they may be acting for the public good. This is because we naturally feel good when we help other people. Helping them is thus self-interest, because when we have enough to satisfy our needs, it is rational to use some money to make ourselves feel good. We may also gain increased standing in the community by being generous. When acting upon greed, people would feel that they never had enough. This would in fact be irrational in some cases. How many cars can you really use? This might still serve society in some ways, such as keeping the economy strong.
Economically speaking, rationality is precisely defined in terms of imputed utility-maximizing behavior under economic constraints. However, greedy people would have monotonic utility. This occurs when more of something does not make you wish for any less. Such people could not be rational.

(3) a. The demand curve doesn't move because price changes. People will purchase fewer items at the higher price along the curve.
b. This would change the shape of the demand curve. For example if elasticity of demand were greater, then for the same change in price, more would be demanded.

(4) Moving the demand curve one unit to the right will create a new equilibrium price of $3.25. This is because at the old price of $3,25, there is now an excess demand. Consumers begin to bid prices up, until supply and demand are in equilibrium.

(5)
Because of the firm's size, it is most efficient when producing 3000 units per month. If it produced more than that, it would strain its capacity, as require such things as paying its employees overtime. If it produced less, than some of its expenditures would go to waste; for example it pays the same cost for its machinery whether it is used or not.

(6) Stage I production is characterized by increasing marginal returns. As more of the variable input is added to the fixed input, the marginal product of the variable input increases. Marginal product is positive and the marginal product curve has a positive slope. For example, the one worker contributes 10 units of output to production, the next worker ...