The shutdown point is that point at which
A)price equals marginal cost.
B)average fixed cost equals marginal cost.
C)average variable cost equals marginal cost.
D)average total cost equals marginal cost.
E)none of the above.

Question

Quizplus · Accepted Answer

The shutdown point is the level of output and price at which a firm covers its variable costs; it occurs where the average variable cost equals the marginal cost.

The Shutdown Point Is That Point at Which