Communism, in theory, refers to the anti-capitalist proposals of Karl Marx and his followers advocating for communal ownership of the means of production. In practice, it describes economic systems where production facilities are state-owned and production decisions are made by official policies rather than market actions.
The shutdown point represents the output price level at which a firm's revenues exactly cover fixed costs. Below this price level, a firm's losses would be minimized by ceasing operations as continued production would generate greater losses.
