Question

A firm encounters its shut down point when:
(a) Average total cost equals price at the profit maximizing level of output
(b) Average variable cost equals price at the profit maximizing level of output
(c) Average fixed cost equals price at the profit maximizing level of output
(d) Marginal cost equals price at the profit maximizing level of output

Answer 1

$\huge\bf\pink{HELLO!!}$

OPTION B is Correct....

Answer 2

Here is your answer....

B) Average variable cost equals price at the profit maximizing level of output .

Hope it help you....