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What is shut down point?

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What is shut down point?

Posted by Gunit Ahuja 6 years, 9 months ago

CBSE > Class 11 > Economics

1 answers

Yaser Siddiquee 6 years, 9 months ago

A shutdown point is a level of operations at which a company experiences no benefit for continuing operations, and therefore decides to shut down temporarily (or in some cases permanently). It results from the combination of output and price where the company earns just enough revenue to cover its total variable costs.

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