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Under what condition should a firm shut down in the short run?
What is the significance of the shutdown point on an average variable cost curve?
Combine the concepts of shutdown and exit to explain a firm's strategic decision-making process.
A firm faces a market price of \$10, and its average variable cost is \$12. What should the firm do?
If a firm's market price is below its average variable cost curve, what should the firm do?
In perfect competition, when is average variable cost relevant?
Why are sunk costs irrelevant to the short run shutdown decision?
Which algebraic condition indicates a firm should shut down in the short run?
What is the shutdown point on an average variable cost curve?
What is the primary difference between a firm shutdown and a firm exit?