what-is-the-significance-of-the-shutdown-point-on-an-average-variable-cost-curve

Question

What is the significance of the shutdown point on an average variable cost curve?

Accepted Answer

It is the price below which a firm will cease production.

Answer

It is the price above which a firm will exit the market.

Answer

It is the point where fixed costs are covered.

Answer

It is the point where marginal cost equals average variable cost.