The Short-Run Shutdown Point for a Perfectly Competitive Business Occurs

question 15

Multiple Choice

The short-run shutdown point for a perfectly competitive business occurs at the point where:

• A)price equals minimum AVC
• B)total revenue is less than total cost
• C)the business stops making an economic profit
• D)price equals minimum AC
• E)price equals minimum MC

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Definitions:

Conciliation

A method of conflict resolution where an impartial third party helps disputing parties reach a mutually acceptable agreement.

Third-Party Mediation

A conflict resolution process involving a neutral third party who helps disputing parties find a mutually acceptable solution.

Pacifism

The belief in the avoidance of war or violence as a means of resolving disputes or achieving social or political goals.

Intimidation

The act of frightening or coercing someone into doing or not doing something.