Explore BrainMass

Explore BrainMass

    Shut Down point

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Refer to the attachment for a perfectly competitive firm

    This firm should shutdown at any price below:

    a) $4

    b) $10

    c) $15

    d) $23

    e) $5

    © BrainMass Inc. brainmass.com October 9, 2019, 9:19 pm ad1c9bdddf


    Solution Preview

    In the short-run the firm managers must simply try "to cover variable costs", In the short-run they must pay the fixed costs whether they operate or not.

    Fixed costs are irrelevant (in the short-run) when ...

    Solution Summary

    This explains the computation of shut down point