The shutdown point for a perfectly competitive firm is the

A) lowest point on the ATC curve.
B) point at which a firm's long-run supply curve ends.
C) lowest point on the AVC curve.
D) lowest point on the marginal cost curve.

Shutdown Point

The level of output and price at which a firm's revenue just covers its variable costs, below which it would be better for the firm to cease operations.

ATC Curve

Represents the average total cost of producing a good or service, calculated by dividing total cost by the quantity produced, and typically displayed as a graph.

AVC Curve

The Average Variable Cost curve, which graphs the per unit variable costs of production against the quantity of output.