<p><span class="math-container">$TC(q)=10+3q+0.5q^2$</span> is a quadratic cost function and has a shutdown point at <span class="math-container">$P=3$</span>. </p>

CC BY-SA 4.0
2020-03-27T18:00:14.223Z
I suspect by quadratic the OP means $TC(q) = q^2 + F$.
Giskard
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2020-03-27T18:57:54.343Z
@Giskard: That's plausible. But even then a shutdown point still exists, albeit a rather uninteresting one. Let's wait and see if OP comes to clarify this.
Herr K.
CC BY-SA 4.0
2020-03-27T17:45:18.027Z
2020-03-27T17:45:18.027Z
Herr K.
<p>If a firm has a quadratic cost function, is it means that the firm does not have shut down point and never shut down? Are the changes in fixed cost do not affect the firm's shutdown decision?</p>

<microeconomics><theory-of-the-firm>
Is it possible for a firm does not have shutdown point?
Anonymous M
# Is it possible for a firm does not have shutdown point?

(Asked by: username_0 on 2020-03-26)

If a firm has a quadratic cost function, is it means that the firm does not have shut down point and never shut down? Are the changes in fixed cost do not affect the firm's shutdown decision?

**Tags:** microeconomics, theory-of-the-firm


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## 1 answers

### Answer by username_1 on 2020-03-27. Score: 2

$TC(q)=10+3q+0.5q^2$ is a quadratic cost function and has a shutdown point at $P=3$.

> **Comments:**
> **username_2**: I suspect by quadratic the OP means $TC(q) = q^2 + F$.  
> **username_1**: @username_2: That's plausible. But even then a shutdown point still exists, albeit a rather uninteresting one. Let's wait and see if OP comes to clarify this.  

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