At the shut-down point,
A)P =AVC
B)TR = TVC
C)the total losses of the firm equal TFC
D)all of the above.

Question

Quizplus · Accepted Answer

At the shut-down point, price equals average variable cost (P = AVC), total revenue equals total variable cost (TR = TVC), and the total losses of the firm equal total fixed cost (TFC). This is because the firm covers its variable costs but cannot cover its fixed costs, leading to a loss equal to the total fixed costs.

At the Shut-Down Point