The Price That Represents the Shutdown Point for a Perfectly

question 75

Multiple Choice

The price that represents the shutdown point for a perfectly competitive firm is the

• A)highest point on the marginal cost curve
• B)lowest point on the marginal cost curve
• C)highest point on the average variable cost curve
• D)lowest point on the average variable cost curve
• E)lowest point on the average total cost curve

---

Definitions:

Operating Activities

Activities related to the day-to-day functioning of a business that affect the operating income, including sales, supply purchases, and operational expenses.

Common Shares

Ownership in a corporation represented by equity shares, which grant holders the right to vote and a portion of the company's earnings.

Investing Activities

Financial transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Open Market

A system where the trading of goods or securities is conducted in such a way that prices are determined by supply and demand.