Question

What is shut-down price? ​

Answer 1

The shut down price are the conditions and price where a firm will decide to stop producing. It occurs where AR <AVC. The shut down price is said to occur, where price (average revenue AR) is less than average variable costs (AVC). At this price (AR<AVC), the firm is making an operating loss.

Answer 2

Answer:

The shut down price are the conditions and price where a firm will decide to stop producing. It occurs where AR <AVC. The shut down price is said to occur, where price (average revenue AR) is less than average variable costs (AVC).

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