Lumen OHM Assessment

Question 1

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

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

Suppose that the equilibrium price is $8 (black line). What will this firm do in the short run?

Shut down.
Exit.
Produce.

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 28. Start Graph, Color black

x	y
0	14
1	14
2	14
3	14
4	14
5	14
6	14
7	14
8	14

Start Graph, Color blue

x	y
0	18
1	15
2	14
3	15
4	18
5	23
6	30
7	39

Start Graph, Color red

x	y
0	18
1	13
2	14
3	21
4	34

Start Graph, Color green

x	y
1	33
2	23
3	21
4	22.5
5	26.6
6	33
7	41.571

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

Suppose that the equilibrium price is $14 (black line). What will this firm do in the short run?

Exit.
Produce.
Shut down.

Hint

Question 3

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

Graphing window shows horizontal axis: 0 to 8, vertical axis: 0 to 26. Start Graph, Color black

x	y
0	15
1	15
2	15
3	15
4	15
5	15
6	15
7	15
8	15

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

Suppose that the equilibrium price is $15 (black line). What will this firm do in the short run?

Produce.
Exit.
Shut down.

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 26. Start Graph, Color black

x	y
0	12
1	12
2	12
3	12
4	12
5	12
6	12
7	12
8	12

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

Suppose that the equilibrium price is $12 (black line). What will this firm do in the short run?

Produce.
Exit.
Shut down.

Hint