Question

Which is true regarding the shutdown point and the break-even point for a perfectly competitive firm?

a) they are two names for the same point

b) the shutdown point is the minimum average variable cost and the break-even point is the minimum average total cost

c) the shutdown point is the minimum average total cost and the break-even point is the minimum average variable cost

d) the shutdown point is the minimum average variable cost and the break-even point is the minimum average fixed cost

e) none of the above