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    Shut Down point

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    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
    https://brainmass.com/economics/short-and-long-run-cost-functions/shut-down-point-computation-180478

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    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

    $2.19