The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.2
MC: Marginal cost curve
MR: Marginal revenue curve
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-The minimum point of the _____ curve is called the shutdown price.

Question

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.2
  MC: Marginal cost curve
MR: Marginal revenue curve
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-The minimum point of the _____ curve is called the shutdown price.

Quizplus · Accepted Answer

The shutdown price is the minimum point of the average variable cost curve, where a firm covers its variable costs but not its fixed costs.

The Figure Given Below Shows the Revenue and Cost Curves