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 21. Start Graph, Color black

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

Start Graph, Color blue

x	y
0	11
1	8
2	7
3	8
4	11
5	16
6	23
7	32

Start Graph, Color red

x	y
0	11
1	6
2	7
3	14
4	27

Start Graph, Color green

x	y
1	19
2	12.5
3	11.667
4	13.75
5	18.2
6	24.833

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

Suppose that the equilibrium price is $2 (black line). What will this firm do in the short run?

Produce.
Exit.
Shut down.

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 21. Start Graph, Color black

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

Start Graph, Color blue

x	y
0	11
1	8
2	7
3	8
4	11
5	16
6	23
7	32

Start Graph, Color red

x	y
0	11
1	6
2	7
3	14
4	27

Start Graph, Color green

x	y
1	19
2	12.5
3	11.667
4	13.75
5	18.2
6	24.833

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

Suppose that the equilibrium price is $7 (black line). What will this firm do in the short run?

Shut down.
Produce.
Exit.

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 20. Start Graph, Color black

x	y
0	9
1	9
2	9
3	9
4	9
5	9
6	9
7	9
8	9

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

Suppose that the equilibrium price is $9 (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 25. Start Graph, Color black

x	y
0	21
1	21
2	21
3	21
4	21
5	21
6	21
7	21
8	21

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

Suppose that the equilibrium price is $21 (black line). What will this firm do in the short run?

Produce.
Exit.
Shut down.

Hint