How would you draw a graph to describe a firm- let's say a restaurant. The restaurant has fixed operating costs. It derives its income from food it sells however, with decreased demand, the firm must increase the price of its food to cover its costs.

Question

twopointinfinity · Answer

What kind of graph?

anonymous · Answer

A graph that shows the effects of decreasing demand on the firm..and how that effects their ability to cover their costs...let me know if that makes sense, if not..I can draw the graph and show which part I find confusing