1.

A firm encounters its 'shutdown point' when?

A. Average total cost equals price at the profit-maximizing level of output
B. Average variable cost equals price at the profit-maximizing level of output
C. Average fixed cost equals price at the profit-maximizing level of output
D. Marginal cost equals price at the profit-maximizing level of output
Answer» C. Average fixed cost equals price at the profit-maximizing level of output


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