The Shutdown Point Is

question 32

Multiple Choice

The shutdown point is:

• A) the point at which economic profit is zero.
• B) the minimum level of AVC.
• C) the intersection of the MC and ATC curves.
• D) the minimum level of AFC.

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Definitions:

Capital Rationing

The process of selecting the most profitable projects to invest in when capital is limited.

Sales Volume

The quantity of goods or services sold or delivered in a given period.

Sensitivity Analysis

A way of assessing how the modification of an independent variable's values affects a dependent variable, under a specific set of hypotheses.

Rate Of Return

The positive or negative change in an investment's value over a certain period, expressed in terms of a percentage of the investment’s beginning cost.