Shut down point is where P = minimum AVC
Here as the firm is in perfectly competitive market, P always equal to MR ( P= MR = Demand)
In the given diagram, D2 = MR2 is the demand curve which is equal to minimum AVC at Q2
So Ans - B) D2
MyLab 4 → XCO DO ECON 201-007-Fall 2019 Test: Exam This Question: 1 pt of 1915 completely Which demand curve i...
ECON 201-007-Fall 2019 Hussein sawah Cest: Exam This Question: 1 pt 34 of 730 completely Consider the market for chicken, llustrated th the figure to the right. The market is initially in equilibrium at a price of P, and at a quality of Suppose the supply curve shifts to the right from S, to S, and the demand curve is to the right from D, D, Note that in the Egure the shift in demand is larger than the supply...