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Why Is the Minimum of the Average Variable Cost Curve

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Why is the minimum of the average variable cost curve called the shutdown point?


Definitions:

ROA

Return on Assets, a financial ratio indicating the profitability of a company relative to its total assets.

ROE

Return on Equity, a financial ratio that measures the profitability of a business in relation to shareholder's equity.

Fixed Assets

Long-term tangible assets used in the operations of a business that are not expected to be converted into cash in the near future.

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