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Shutdown point and break even point
Economics
Sir this two questions are confusing. Pls explain the answer with reason.
Answers (4)
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?
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