In economics, the term "shoutdown point" refers to the point where the Marginal cost curve crosses the total revenue curve average variable cost curve crosses the total revenue curve. Average variable cost curve crosses the marginal cost curve. Marginal cost curve crosses the average variable cost curve.

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06-12-2022
Business

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In economics, the term "shoutdown point" refers to the point where the Marginal cost curve crosses the total revenue curve average variable cost curve crosses the total revenue curve. Average variable cost curve crosses the marginal cost curve. Marginal cost curve crosses the average variable cost curve.

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Tundexiidn Tundexiidn · Answer 1 · 2022-12-09T05:08:46-05:00

In economics, the term "shoutdown point" refers to the point where the marginal cost curve crosses the average variable cost curve. The Option D is correct.

What Is a Shutdown Point?

A shutdown point refers to the level of operations at which a company experiences no benefit for continuing operations and therefore, decide to shut down temporarily or cases permanently. It often results from combination of output and price where the company earns just enough revenue to cover its total variable costs.

In essence, this point denotes the exact moment when a company’s marginal revenue is equal to its variable costs, that is, it occurs when the marginal profit becomes negative.

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What Is a Shutdown Point?

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