What is the primary difference between a short run shutdown and a long run exit decision?

• A. A short run shutdown involves all costs, while a long run exit involves only fixed costs.
• B. A short run shutdown is permanent, while a long run exit is temporary.
• C. A short run shutdown is based on total costs, while a long run exit is based on variable costs.
• D. A short run shutdown is temporary, while a long run exit is permanent.

Answer: (D)