SpletSolution. At break-even point, a firm makes normal profits. At this point, total revenue and total cost are equal.Profits are said to be normal when TR=TC or AR=AC. Normal profits are defined as the minimum return that the producer expects from his capital invested in the business. Normal profits are a part of total cost. SpletThe short-run supply curve for a perfectly competitive firm is the cost curve above the price. 1marginal; shut-down 2) average variable; shut-down 3) average total; break-even 4) marginal; break-even Question 48 The shut-down point in the short run is: 1 the point at which economic profit is zero. 2) the intersection of the MC and ATC curves.

In the short run, under what conditions should the firm shut down ...

SpletThe Shutdown Point. In the short run, a firm operating at a loss must decide whether to continue to operate or temporarily shutdown. The shutdown rule states "in the short run a … The short run shutdown point for a competitive firm is the output level at the minimum of the average variable cost curve. Assume that a firm's total cost function is TC = Q -5Q +60Q +125. Then its variable cost function is Q –5Q +60Q, and its average variable cost function is (Q –5Q +60Q)/Q= Q –5Q + 60. The slope of the average variable cost curve is the derivative of the latter, namely 2Q – 5. Equating this to zero to find the minimum gives Q = 2.5, at which level of output … 龍が如く0 紅

An entrepreneur will stay in business in the long run as long as he …

SpletAt shut-down point, the firm no longer gets benefits from its operations. Was this answer helpful? 0. 0. Similar questions. A firm reaches shut-down point when: Medium. View solution > In the short run, shut down point is _____. Medium. View solution > Shut-down point means shutting down of the firm. Discuss. Medium. View solution > Splet20. nov. 2024 · 1. What Is Shut down Decision? A shut-down decision means that the company is stopping production for a short period. It means that the firm will resume its … tasmiyah trading llc