The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-The permanent shut down point of a perfectly competitive firm, in the long run, is:

Question

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
  MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-The permanent shut down point of a perfectly competitive firm, in the long run, is:

Quizplus · Accepted Answer

The permanent shutdown point of a perfectly competitive firm is the point where the firm is unable to cover the total cost of production, including fixed costs. This occurs at the minimum point of the ATC curve, which represents the average cost per unit of output, including both fixed and variable costs. At this point, the firm is not generating any profit and cannot continue to operate in the long run. The minimum points of the AVC, MC, AR, and AFC curves do not determine the permanent shutdown point of the firm.

The Figure Given Below Shows the Revenue and Cost Curves