At the shut-down point, the

Name: At the shut-down point, the
Brand: Quizplus
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At the shut-down point, a firm's total revenue is equal to its variable costs, meaning it covers the variable costs but not the total costs (including fixed costs). Therefore, the firm is indifferent to whether it operates or shuts down because operating at this point results in a loss equal to the fixed costs, which is the same loss it would incur if it shut down (since fixed costs must be paid regardless of production level).

At the Shut-Down Point, the