Page 10 - FINAL CFA SLIDES DECEMBER 2018 DAY 5
P. 10
Session Unit 4:
14. Topics in Demand & Supply Analysis, p. 1
LOS 14.e: Determine and interpret breakeven and shutdown points of production, p. 11
Shutdown and Breakeven Under Perfect Competition, p11/12
Key ideas, p. 13
If AR ≥ ATC, operate in SR/LR
If AR ≥ AVC, but AR < ATC, operate in SR but exit in LR
If AR < AVC, shut down in the SR and exit in LR
