Microeconomics

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Short Run Shutdown Decision

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We shutdown the business if producing units will cause us to lose more money.

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concept

Short Run Shutdown Decision

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Short Run Shutdown Decision (continued)

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Short Run Shutdown Decision on the Graph

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Problem

The price for a pair of edible underpants is $50. In the short-run, the firm should: 

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Problem

The price for a pair of edible underpants is $50. In the short-run, the firm’s total revenue is: 

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Problem

The price for a pair of edible underpants is $50. In the short-run, the firm’s profit (or loss) is: 

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Problem

The firm shuts down at any price below: 

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Problem

What is the least amount of output, assuming the firm does not shut down? 

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Problem

If the price falls from P4 to P3, then output will decrease by