Lumen OHM Assessment

The graph below shows cost curves for a firm operating in a perfectly competitive market.

Graphing window shows horizontal axis: 0 to 8, vertical axis: 0 to 20. Start Graph, Color black

x	y
0	13
1	13
2	13
3	13
4	13
5	13
6	13
7	13
8	13

Start Graph, Color blue

x	y
0	10
1	7
2	6
3	7
4	10
5	15
6	22

Start Graph, Color red

x	y
0	10
1	5
2	6
3	13
4	26

Start Graph, Color green

x	y
1	17
2	11
3	10.333
4	12.5
5	17
6	23.667

Label "Quantity of Apples" at pixel coordinates (175,0).Label "Price of Apples" at pixel coordinates (0,170).

Suppose that the equilibrium price is $13 (black line). This firm is earning

Profits
Losses
Zero Economic Profits (Break-even point)

Hint

The graph below shows cost curves for a typical firm operating in a perfectly competitive market.

Graphing window shows horizontal axis: 0 to 8, vertical axis: 0 to 20. Start Graph, Color black

x	y
0	13.19
1	13.19
2	13.19
3	13.19
4	13.19
5	13.19
6	13.19
7	13.19
8	13.19

Start Graph, Color blue

x	y
0	10
1	7
2	6
3	7
4	10
5	15
6	22

Start Graph, Color red

x	y
0	10
1	5
2	6
3	13
4	26

Start Graph, Color green

x	y
1	17
2	11
3	10.333
4	12.5
5	17
6	23.667

Label "Quantity of Oranges" at pixel coordinates (175,0).Label "Price of Oranges" at pixel coordinates (0,170).

Suppose that the equilibrium price is $13.19 (black line). What will happen in this market in the long run?

No new entry/no exit.
Existing firms will exit.
New firms will enter.

Hint

The graph below shows cost curves for a typical firm operating in a perfectly competitive market.

Graphing window shows horizontal axis: 0 to 8, vertical axis: 0 to 22. Start Graph, Color black

x	y
0	9.92
1	9.92
2	9.92
3	9.92
4	9.92
5	9.92
6	9.92
7	9.92
8	9.92

Start Graph, Color blue

x	y
0	12
1	9
2	8
3	9
4	12
5	17
6	24
7	33

Start Graph, Color red

x	y
0	12
1	7
2	8
3	15
4	28

Start Graph, Color green

x	y
1	21
2	14
3	13
4	15
5	19.4
6	26

Label "Quantity of Oranges" at pixel coordinates (175,0).Label "Price of Oranges" at pixel coordinates (0,170).

Suppose that the equilibrium price is $9.92 (black line). What will happen in this market in the long run?

New firms will enter.
Existing firms will exit.
No new entry/no exit.

Hint

The graph below shows cost curves for a typical firm operating in a perfectly competitive market.

Graphing window shows horizontal axis: 0 to 8, vertical axis: 0 to 25. Start Graph, Color black

x	y
0	16.982
1	16.982
2	16.982
3	16.982
4	16.982
5	16.982
6	16.982
7	16.982
8	16.982

Start Graph, Color blue

x	y
0	15
1	12
2	11
3	12
4	15
5	20
6	27
7	36

Start Graph, Color red

x	y
0	15
1	10
2	11
3	18
4	31

Start Graph, Color green

x	y
1	27
2	18.5
3	17
4	18.75
5	23
6	29.5

Label "Quantity of Textbooks" at pixel coordinates (175,0).Label "Price of Textbooks" at pixel coordinates (0,170).

Suppose that the equilibrium price is $16.982372141153 (black line). What will happen in this market in the long run?

No new entry/no exit.
Existing firms will exit.
New firms will enter.

Hint

The graph below shows cost curves for a typical firm operating in a perfectly competitive market.

Graphing window shows horizontal axis: 0 to 8, vertical axis: 0 to 24. Start Graph, Color black

x	y
0	20
1	20
2	20
3	20
4	20
5	20
6	20
7	20
8	20

Start Graph, Color blue

x	y
0	14
1	11
2	10
3	11
4	14
5	19
6	26
7	35

Start Graph, Color red

x	y
0	14
1	9
2	10
3	17
4	30

Start Graph, Color green

x	y
1	25
2	17
3	15.667
4	17.5
5	21.8
6	28.333

Label "Quantity of Avocados" at pixel coordinates (175,0).Label "Price of Avocados" at pixel coordinates (0,170).

Suppose that the equilibrium price is $20 (black line). What will happen in this market in the long run?

New firms will enter.
Existing firms will exit.
No new entry/no exit.

Hint