Question

owners of company p wants to stay in business for 3 more months and then sell before retirement. to keep their business open they must produce above the shut - down point. what is the shut - down price for company p?

Explanation:

Step1: Recall shut - down point concept

The shut - down point in the short - run for a firm is where price equals the minimum of average variable cost (AVC).

Step2: Identify minimum of AVC from graph

By looking at the graph of AVC, we find its lowest value. The minimum of the AVC curve occurs at a value of approximately 15 on the vertical axis.

Answer:

$15$