Figure 6.3
-Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. The price at which the firm is just as well off either operating or shutting down is

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the shutdown point occurs where the price equals the minimum average variable cost (AVC). At this point, the firm is indifferent between operating and shutting down.

Figure 6.3 -Figure 6.3 Shows the Cost Structure of a Firm in Firm