The above figure shows some a firm's cost curves and its marginal revenue curve.
-The price for the shutdown point ________.

Question

Quizplus · Accepted Answer

The shutdown point is where average variable cost curve (AVC) intersects with the marginal cost (MC) curve. In this case, it falls between $0 and $2.99 on the y-axis. The firm should shut down in the short run if the market price is below this point, as it would not be able to cover its variable costs.

The Above Figure Shows Some a Firm's Cost Curves and Its