-Consider the perfectly competitive firm in the above figure. The shutdown point occurs at a price of

Name: -Consider the perfectly competitive firm in the above figure. The shutdown point occurs at a price of
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The shutdown point occurs when the firm's total revenue is equal to its total variable cost. At this point, the firm is just covering its variable costs and is not making any profit. In the figure, the total variable cost is $11.00, so the shutdown point occurs at a price of $11.00.

-Consider the Perfectly Competitive Firm in the Above Figure