The point at which the firm covers its variable cost is called:
A)Point of Inflexion
B)Equilibrium
C)Shut down
D)None of these

Question

Quizplus · Accepted Answer

The point at which a firm covers its variable cost but not its total cost is referred to as the shutdown point. At this point, the firm is indifferent between continuing operations and shutting down temporarily, as it can cover its variable costs but not make a contribution to fixed costs.

The Point at Which the Firm Covers Its Variable Cost