Based on the above information,at what price does the firm consider shutting-down?
A)$25
B)$0
C)$15
D)$10

Question

Quizplus · Accepted Answer

The firm's shutdown point is the minimum point of the AVC curve, which is $10 per unit in this case. This is because if the price falls below $10, the firm will not be able to cover its variable costs and will incur losses. Therefore, option D is the correct answer. Option A, $25, is the profit-maximizing price, while option C, $15, is the breakeven price. Option B, $0, is not a relevant answer in this context.

Based on the Above Information,at What Price Does the Firm