Are the decisions to shut down and exit a market short-run or long-run decisions

Question

Quizplus · Accepted Answer

The decision to shut down refers to temporarily stopping production in the short run due to lack of demand or other short-term factors, while the decision to exit refers to permanently leaving the market in the long run due to a variety of factors such as sustained losses or lack of profitability. Therefore, the decision to shut down is a short-run decision, whereas the decision to exit is a long-run decision.

Are the Decisions to Shut Down and Exit a Market