What is the price at the growers shutdown point

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Reference no: EM131240701

Poinsettia growing is a perfectly competitive industry and all poinsettia growers have the same costs.

The market price of poinsettias is $21 a pot and each grower maximizes profit by producing 2800 pots a week.

Average total cost of producing poinsettias is $16 a pot and average variable cost is ?$11 a pot. Minimum average variable cost is $3 a pot

What is the price at the grower's shutdown point?

Reference no: EM131240701

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