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Shutdown point and break even point

Economics

Sir this two questions are confusing. Pls explain the answer with reason.

Sri kanaga Varshini

CA Final

★ 3K+

26-Oct-20 07:04

454

Answers (4)

Shut down point is where incremental revenue is less than incremental cost. Break even point is where there is no profit or loss. At this point total cost = total revenue.

CA Suraj Lakhotia

Admin

26-Oct-20 09:42

CA Suraj Lakhotia Admin

Shut down point is where incremental revenue is less than incremental cost. Break even point is where there is no profit or loss. At this point total cost = total revenue.

Sir it means Ac= price : break even point Avc= price : shutdown point Am I right?

Thread Starter

Sri kanaga Varshini

CA Final

★ 3K+

28-Oct-20 10:19

Thread Starter

Sri kanaga Varshini

Sir it means Ac= price : break even point Avc= price : shutdown point Am I right?

Yes

CA Suraj Lakhotia

Admin