A) Average total cost equals 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
✅ ANSWER: B
A firm encounters its ‘shutdown point’ when average variable cost equals price at the profit-maximizing level of output.
A firm encounters its ‘shutdown point’ when average variable cost equals price at the profit-maximizing level of output.