There may be a different criterion used for the long run, but for the short run, a firm should shut down production if price is less than
A) ATC
B) AR
C) MC
D) AVC
E) AFC

Question

Quizplus · Accepted Answer

In the short run, a firm should shut down production if the price is less than the average variable cost (AVC) because it cannot cover its variable costs, leading to losses greater than its fixed costs if it continues to operate.

There May Be a Different Criterion Used for the Long