Question

Question 1: A firm can restart production after shut- down point if there is a o fall in price O rise in price O increase in cost constant cost​

Answer 1

Answer:

At the shutdown point, there is no economic benefit to continuing production. If an additional loss occurs, either through a rise in variable costs or a fall in revenue, the cost of operating will outweigh the revenue. If the reverse occurs, continuing production is more practical.

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Answer 2

Answer:

At the shutdown point, there is no economic benefit to continuing production. If an additional loss occurs, either through a rise in variable costs or a fall in revenue, the cost of operating will outweigh the revenue. If the reverse occurs, continuing production is more

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