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Shut down point is that point at which firms earn less than normal profits. It is called shut down point because in the long run firm’s shutdown their operations at this point.
Breakeven point is that point at which there are zero normal profits, that is, there are no profits no losses. The firms break even at this point.
The shut-down point is the point where you have to close a business. In some countries this point is defined by the effective laws for example when your commulative losses exceeds50% of your capital.
the breakeven point is the point where your revinue form your sales equals your total total cost.
Firm will choose to implement a Shutdown of production when the revenue received from the sale of the goods or services produced cannot even cover the variable costs of production. In that situation, the firm will experience a higher loss when it produces, compared to not producing at all.
Breakeven point is the point at which cost or expenses and revenue are equal.
shutdown occurs if marginal revenue is below avg, variable cost at the profit-maximizing output. Producing anything would not generate returns significant enough to offset the associated variable costs; producing some output would add losses (additional costs in excess of revenues) to the costs inevitably being incurred (the fixed costs). By not producing, the firm loses only the fixed costs.