What is the difference between shut down point and breakeven point?
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As seen previously, the break even point is the point where the marginal cost (MC) equals the average total cost (ATC). The shut-down point of production, on the other hand, is the price at which the the marginal cost does not even cover the average variable cost (ATC)....
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As seen previously, the break even point is the point where the marginal cost (MC) equals the average total cost (ATC). The shut-down point of production, on the other hand, is the price at which the the marginal cost does not even cover the average variable cost (ATC)
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