Refer to the information provided in Figure 9.3 below to answer the question(s) that follow. Figure 9.3
-Refer to Figure 9.3. This firm's ________ point corresponds to point B.
A) break even
B) shutdown
C) profit maximizing
D) profit minimizing

Question

Refer to the information provided in Figure 9.3 below to answer the question(s) that follow.  Figure 9.3
-Refer to Figure 9.3. This firm's ________ point corresponds to point B.
A) break even 
B) shutdown 
C) profit maximizing 
D) profit minimizing

Quizplus · Accepted Answer

Point B corresponds to the shutdown point, where the firm covers its variable costs but not its fixed costs, and would cease production if prices fall below this point.

Refer to the Information Provided in Figure 9