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    Shut-down, Profit maximizing, Zero-Profit Points

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    Which of the following statements is correct in reference to the figure below?

    A) B is the shutdown point
    B) B is the profit-maximizing Point
    C) is the zero-profit point.
    D) A is the shutdown point
    E) C is the shutdown point

    © BrainMass Inc. brainmass.com March 4, 2021, 5:57 pm ad1c9bdddf
    https://brainmass.com/economics/short-and-long-run-cost-functions/shut-down-profit-maximizing-zero-profit-points-20242

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    D is correct. At A, the AVC reaches its minimum. If the market price is higher than A but lower than B, the firm will make ...

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