?

Microeconomics

Free Version

Upgrade subject to access all content

Easy

Breaking Even and Shutting Down in the Short Run

MICRO-NYVII3

Consider the following graph of marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a perfectly competitive firm. Which of the following points is the break-even point? Which of the following points is the shut-down point?

Created for Albert.io. Copyright 2016. All rights reserved.

The break-even point is

and the shutdown point is

.