Share This Article:

Economic Definition of shutdown monopolistic competition. Defined.

Offline Version: PDF

Term shutdown monopolistic competition Definition: A monopolistically competitive firm is presumed to minimize economic losses by shutting down production, if price is less than average variable cost in the short run. This is one of three short-run production alternatives facing a firm. The other two are profit maximization (if price exceeds average total cost) and loss minimization (if price is greater than average variable cost but less than average total cost).


« short-run supply curve monopolistic competition | total analysis monopolistic competition »


Alphabetical Reference to Over 2,000 Economic Terms