Saved Bookmarks
| 1. |
shut down point in microeconomics |
| Answer» Shutdown point:\xa0Shutdown point is a point where a firm is indifferent between whether to produce or shutdown. In other words, it is a situation when a firm is able to cover its variable costs only.The condition of shutdown point is:Price = Minimum of SAVC (Short run average variable cost)Multiply by outputPrice x output = SAVC x outputTR = TVC | |