Commerce Exam > Commerce Videos > Economics CUET Preparation > The Shutdown Point
The Shutdown Point Video Lecture | Economics CUET Preparation - Commerce
|
172 videos|18 docs|76 tests
|
FAQs on The Shutdown Point Video Lecture - Economics CUET Preparation - Commerce
| 1. What is the shutdown point in economics? |  |
Ans. The shutdown point in economics refers to the production level at which a firm is unable to cover its variable costs, resulting in temporary or permanent closure of operations. At this point, the firm is not generating enough revenue to cover the variable costs required to produce goods or services.
| 2. How is the shutdown point determined? | |
Ans. The shutdown point is determined by comparing the firm's variable costs with its total revenue. If the total revenue is less than the variable costs, the firm has reached its shutdown point. In other words, if the firm cannot generate enough revenue to at least cover the variable costs, it is not economically viable to continue operations.
| 3. What are variable costs? | |
Ans. Variable costs are expenses that change in direct proportion to the level of production or output. These costs include raw materials, direct labor, and other inputs that vary with the quantity of goods or services produced. Variable costs increase as production increases and decrease as production decreases.
| 4. What happens when a firm reaches its shutdown point? | |
Ans. When a firm reaches its shutdown point, it faces a decision to temporarily or permanently cease operations. Temporary shutdowns may occur when the firm anticipates that market conditions will improve in the future, allowing them to resume production. Permanent shutdowns, on the other hand, result in the complete closure of the firm due to long-term unprofitability.
| 5. How does the shutdown point relate to the break-even point? | |
Ans. The shutdown point and the break-even point are related concepts in economics. The break-even point is the production level at which a firm's total revenue equals its total costs, including both variable and fixed costs. The shutdown point occurs when the firm's total revenue falls below its variable costs. In other words, the shutdown point is a level of production below the break-even point, indicating that the firm is unable to cover its variable costs.
About this Video
|
4.95/5 Rating |
|
Nov 21, 2024 Last updated |
Video Description: The Shutdown Point for Commerce 2024 is part of Economics CUET Preparation preparation.
The notes and questions for The Shutdown Point have been prepared according to the Commerce exam syllabus.
Information about The Shutdown Point covers all important topics for Commerce 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for The Shutdown Point.
Introduction of The Shutdown Point in English is available as part of our Economics CUET Preparation for Commerce & The Shutdown Point in
Hindi for Economics CUET Preparation course. Download more important topics related with notes, lectures and mock test series for
Commerce Exam by signing up for free.
Description
Video Lecture & Questions for The Shutdown Point Video Lecture | Economics CUET Preparation - Commerce - Commerce full syllabus preparation | Free video for Commerce exam to prepare for Economics CUET Preparation.
Information about The Shutdown Point
Here you can find the meaning of The Shutdown Point defined & explained in the simplest way possible.
Besides explaining types of The Shutdown Point theory, EduRev gives you an ample number of questions to practice The Shutdown Point tests,
examples and also practice Commerce tests.
|
172 videos|18 docs|76 tests
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Semester Notes
,Extra Questions
,Important questions
,Objective type Questions
,Viva Questions
,The Shutdown Point Video Lecture | Economics CUET Preparation - Commerce
,The Shutdown Point Video Lecture | Economics CUET Preparation - Commerce
,mock tests for examination
,Summary
,practice quizzes
,past year papers
,Previous Year Questions with Solutions
,video lectures
,Exam
,The Shutdown Point Video Lecture | Economics CUET Preparation - Commerce
,Sample Paper
,study material
,ppt
,shortcuts and tricks
,MCQs
,Free
;
Study The Shutdown Point on the App
Students of Commerce can study The Shutdown Point alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the The Shutdown Point,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of The Shutdown Point is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup