Day: December 3, 2018

For a perfectly competitive firm, the shutdown point is ……… ?

Select ONE answer:

1. the price at which economic profit is zero.
2. the price at which total opportunity cost is zero.
3. the level of output at which price equals minimum average variable cost.
4. the level of output at which price equals minimum average total cost.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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