Home › CBSE Class 11 (Arts) › Economics › Microeconomics: Producer Behaviour and Supply › The shutdown point lies at the minimum of which …
The shutdown point lies at the minimum of which cost?
AAverage fixed cost
BAverage variable cost
CTotal fixed cost
DMarginal revenue
Answer & Solution
Correct answer: B. Average variable cost
If price falls below minimum AVC, the firm cannot cover its variable costs and stops producing.
Related questions
What does a supply schedule show?Labour supply is the time people will work as a function of what?For a perfectly competitive seller, how is the price determined?What is said about a supply curve for a monopoly?A supply function can be derived only under which market structure?Which law shapes the short-run marginal cost curve and hence supply?A firm's long-run supply curve is the LRMC portion above the minimum of which cost?A competitive firm's short-run supply curve is which part of its cost curves?