question archive In the short run - shutdown rule, explain in your own words why in the short run a firm may continue to produce even at a loss provided the price is more than the average variable cost
In the short run - shutdown rule, explain in your own words why in the short run a firm may continue to produce even at a loss provided the price is more than the average variable cost
Subject:EconomicsPrice: Bought3
In the short run - shutdown rule, explain in your own words why in the short run a firm may continue to produce even at a loss provided the price is more than the average variable cost. Also, provide an example of when a firm might face this decision. Think about how fixed and variable costs may affect shut-down decisions.
