Lumen OHM Assessment

Question 1

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 26. 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	16
1	13
2	12
3	13
4	16
5	21
6	28
7	37

Start Graph, Color red

x	y
0	16
1	11
2	12
3	19
4	32

Start Graph, Color green

x	y
1	29
2	20
3	18.333
4	20
5	24.2
6	30.667
7	39.286

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

Zero Economic Profits (Break-even point)
Losses
Profits

Hint

Question 2

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	21.98
1	21.98
2	21.98
3	21.98
4	21.98
5	21.98
6	21.98
7	21.98
8	21.98

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

Suppose that the equilibrium price is $21.98 (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

Question 3

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 27. Start Graph, Color black

x	y
0	17.66
1	17.66
2	17.66
3	17.66
4	17.66
5	17.66
6	17.66
7	17.66
8	17.66

Start Graph, Color blue

x	y
0	17
1	14
2	13
3	14
4	17
5	22
6	29
7	38

Start Graph, Color red

x	y
0	17
1	12
2	13
3	20
4	33

Start Graph, Color green

x	y
1	31
2	21.5
3	19.667
4	21.25
5	25.4
6	31.833
7	40.429

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

Suppose that the equilibrium price is $17.66 (black line). What will happen in this market in the long run?

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

Hint

Question 4

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

Question 5

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 27. 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	17
1	14
2	13
3	14
4	17
5	22
6	29
7	38

Start Graph, Color red

x	y
0	17
1	12
2	13
3	20
4	33

Start Graph, Color green

x	y
1	31
2	21.5
3	19.667
4	21.25
5	25.4
6	31.833
7	40.429

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

Suppose that the equilibrium price is $13 (black line). What will happen in this market in the long run?

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

Hint