Different firms in a competitive industry will have differing shutdown points when
A) they have different cost curves.
B) they are charging different prices.
C) they entered the industry at different times.
D) they all have identical cost curves.

Question

Quizplus · Accepted Answer

The shutdown point is determined by the intersection of the firm's marginal revenue curve and its average variable cost curve. This point will differ between firms if their cost curves are not identical.

Different Firms in a Competitive Industry Will Have Differing Shutdown