б. MC ATC AVC MR MR MR MR 0 Quantity A.The shut down point is at...

Question

Question

б. MC ATC AVC MR MR MR MR 0 Quantity A.The shut down point is at p? points) B. The break- even point is at p

Answer 1

Answer #1

A. At P1, When price reaches minimum average variable cost, it needs to shut down as it cannot cover variable cost to continue production

B. At P3, Break even is achieved at a point where price = min ATC so that it would be at no loss, no profit situation

Answer 2

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