If the shutdown rule, p < AVC, is the same in the short run and the long run, explain why the shutdown prices may be different
What will be an ideal response?
In the short run there are fixed costs, but in the long run all costs are variable. In the long run the average variable cost is usually higher than in the short run.
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________ have a horizontal and a vertical axis and are used in economics to illustrate relationships between two economic variables
A) One-dimensional graphs B) Two-dimensional graphs C) Bar graphs D) Pie Charts
An adverse supply shock would directly ________ labor productivity by changing the amount of output that can be produced with any given amount of capital and labor
It would also indirectly ________ average labor productivity through changes in the level of employment. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease