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A firm encounters its shut down point when:
  • a)
    Average total cost equal price at the profit maximizing level of output
  • b)
    Average variable cost equals price at the profit maximizing level of output
  • c)
    Average fixed cost equals price at the profit maximizing level of output
  • d)
    Marginal cost equals price at the profit maximizing level of output
Correct answer is option 'B'. Can you explain this answer?
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A firm encounters its shut down point when:a)Average total cost equal price at the profit maximizing level of outputb)Average variable cost equals price at the profit maximizing level of outputc)Average fixed cost equals price at the profit maximizing level of outputd)Marginal cost equals price at the profit maximizing level of outputCorrect answer is option 'B'. Can you explain this answer?
Question Description
A firm encounters its shut down point when:a)Average total cost equal price at the profit maximizing level of outputb)Average variable cost equals price at the profit maximizing level of outputc)Average fixed cost equals price at the profit maximizing level of outputd)Marginal cost equals price at the profit maximizing level of outputCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A firm encounters its shut down point when:a)Average total cost equal price at the profit maximizing level of outputb)Average variable cost equals price at the profit maximizing level of outputc)Average fixed cost equals price at the profit maximizing level of outputd)Marginal cost equals price at the profit maximizing level of outputCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A firm encounters its shut down point when:a)Average total cost equal price at the profit maximizing level of outputb)Average variable cost equals price at the profit maximizing level of outputc)Average fixed cost equals price at the profit maximizing level of outputd)Marginal cost equals price at the profit maximizing level of outputCorrect answer is option 'B'. Can you explain this answer?.
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