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0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

11. Perfect Competition

Short Run Shutdown Decision

Microeconomics

11. Perfect Competition

Short Run Shutdown Decision

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Multiple Choice

What is the least amount of output, assuming the firm does not shut down?

5 units

8 units

10 units

11 units

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Verified step by step guidance

Identify the key curves on the graph: Average Total Cost (ATC), Average Variable Cost (AVC), and Marginal Cost (MC).

Understand that the firm will not shut down as long as it can cover its average variable costs (AVC). This means the price must be at least equal to the minimum point on the AVC curve.

Locate the minimum point on the AVC curve on the graph. This is the point where the AVC is at its lowest, which corresponds to a specific quantity of output.

Determine the quantity of output at which the price equals the minimum AVC. This is the least amount of output the firm can produce without shutting down.

From the graph, observe that the minimum point on the AVC curve corresponds to a quantity of 8 units. Therefore, the least amount of output, assuming the firm does not shut down, is 8 units.