Question

Difference between break even point and shut down point?.

Answer 1

Answer:

difference between them

Explanation:

Shut down point is that point at which firms earn less than normal profits. It is called shut down point because in the long run firm’s shutdown their operations at this point.

 

Breakeven point is that point at which there are zero normal profits, that is, there are no profits no losses. The firms break even at this point.