If the market price is currently above the shut-down price,the firm will be making positive profits.

Question

Quizplus · Accepted Answer

The shut-down price typically refers to the minimum price at which a firm covers its variable costs in the short run. If the market price is above the shut-down price, it means the firm can cover its variable costs and possibly some of its fixed costs, but it does not guarantee positive profits, as total costs (including fixed costs) may still exceed total revenue.

If the Market Price Is Currently Above the Shut-Down Price,the