Explain what money income is and why it is less inclusive than ...

[Lisaclaire]

Explain what money income is and why it is less inclusive than economic income.
 
  What will be an ideal response?

Question 2

Why is the minimum of the average variable cost curve called the shutdown point?
 
  What will be an ideal response?

[hanadaa]

Answer to Question 1

Money income is the measure of income used by the Census Bureau. Because it excludes non-cash transfer payments and capital gains income, it is less inclusive than economic income.

Answer to Question 2

The lowest point on the average variable cost curve is called the shutdown point because when price falls below this point, total revenue is insufficient to cover variable costs and the firm will shut down and incur a loss equal to its fixed costs.

[Lisaclaire]

TYSM

[recede]

Excellent