Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter22: Perfect Competition
Section: Chapter Questions
Problem 4WNG
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Shut down point is the price level below the Average variable cost. If the price of the good is below AVC, then the firm will not be able to even bare its variable costs. Therefore, this point is known as the shut down point.
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