Refer to Figure 9.3. This firm's ________ point corresponds to point B.

A) break even
B) shutdown
C) profit maximizing
D) profit minimizing

Question

Refer to Figure 9.3. This firm's ________ point corresponds to point B.A)  break evenB)  shutdownC)  profit maximizingD)  profit minimizing

Lydia Warin · Accepted Answer

Final Answer : B, Explanation :  Point B corresponds to the shutdown point, where the firm covers its variable costs but not its fixed costs, and would cease production if prices fall below this point.

Refer to Figure 9.3. This firm's ________ point corresponds to point B.

A) break even
B) shutdown
C) profit maximizing
D) profit minimizing

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Learning Objectives

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