Figure 9-9
Figure 9-9 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm.
-Refer to Figure 9-9.Identify the short-run shut down point for the firm.

Question

Figure 9-9
  Figure 9-9 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm.
-Refer to Figure 9-9.Identify the short-run shut down point for the firm.

Quizplus · Accepted Answer

The short-run shutdown point occurs where the price is equal to the minimum average variable cost (AVC). In the context of a graph, this is typically represented by point 'b'.

Figure 9-9 Figure 9-9 Shows Cost and Demand Curves Facing