Saturday, November 12, 2011

How to find the level of fixed costs that would be covered by a firm by looking at a graph. Im lost?

So I have a question that is asking to find the level of fixed costs a firm can cover at a price of $7.00. On the x-axis is quantity and the y has dollar. It is under perfect competition so 7.00 would also be the marginal revenue. The graph has AVC, MC, and ATC. So how do I figure out the fixed costs the firm can cover? thanks for any help

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