Differentiate between the shut down point and break even point. – InterviewSolution

1.	Differentiate between the shut down point and break even point.
Answer» Shut down point refers to a situation where average revenue is equal to average variable cost. In other words it is the minimum pint of AVC. On the other hand, break even point is the no profit, no loss point. It is the point where TR = TC or AR = AC.

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