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    Perfectly Competitive Market

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    I'm looking for help on how to answer the attached questions, based on the graph in said attachment. I'm having trouble deciphering the graph in order to answer the questions. Can you please help?

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    a. The level of this firm should produce at is the level at which the marginal cost equals marginal revenue. In other words the output is should produce is 7.
    b. The firm is a price taker, remember it is perfect competition. The price given to the firm is $28.
    c. The firm's average total cost at this level is $32 so the total cost is 7X $32 = $224.
    d. The firm's average variable cost at ...

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