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Commerce · Q400

Economics

Graduate and Post Graduate · Commerce · question 400

Q400

Shutdown point referes to the state of loss in short run where a firm need to decide whether to continue with production activity or to suspend it. This point is decided under which condition? 1. AR = AVC 2. AR = MC 3. AR = TVC 4. AR = AC

A.
Both 1 and 3
B.
Both 2 and 4
C.
Only 1
Answer
D.
Only 4

Answer: Option C

Solution

Answer: Option C
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