Asked by
Sammy's Mango
on Oct 27, 2024
Verified
The short-run shut-down price is the:
A) price at which economic profit is zero.
B) minimum of the AVC curve.
C) intersection of the MC and ATC curves.
D) minimum of the AFC curve.
AVC Curve
A graph representing the average variable cost of producing different quantities of output, typically U-shaped due to economies and diseconomies of scale.
Short-run Shut-down Price
The price level at which a firm's total revenue is equal to its variable costs, below which it should cease operations.
- Recognize the circumstances that determine whether a business should maintain operations or cease them in the short term, through the evaluation of pricing and cost factors.
Verified Answer
BM
Learning Objectives
- Recognize the circumstances that determine whether a business should maintain operations or cease them in the short term, through the evaluation of pricing and cost factors.
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