
Use the figure above to answer this question. Which of the following is true regarding the firm's its supply decision?
◦ We cannot determine the shut down point without more information.
◦ The shut down point is 1,000 units.
◦ The shut down point is 1,200 units.
◦ Shut down occurs if the price falls to $7.
◦ The shut down point is greater than 1,400 units as average total cost reaches a maximum.