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Fact 11.2.1 GM to Cut Production and Jobs
General Motors will temporarily idle five U.S.assembly plants that build sedans and coupes,such as the Chevrolet Cruze,Cadillac CTS,and Chevy Camaro,as American motorists by the millions shift from passenger cars to utility vehicles and other light trucks.
Source: The Toronto Star,December 21,2016
-Refer to Fact 11.2.1.The shutdown decision maximizes GM's economic profit (or minimizes its loss)when price is less than

Question

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By temporarily shutting down assembly plants that build sedans and coupes, GM is minimizing its loss in the short run when price is less than average variable cost. This decision indicates that producing these vehicles is not profitable for GM in the current market conditions, so it is better to temporarily halt production and avoid incurring further losses.

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