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Firms earning a loss will sometimes shut down in the short run. What quantity will the firm produce if it shuts down in the short run?.

Sagot :

The number of units that would be produced by the firm if it shut down is zero units.

When would a firm shut down?

A firm shuts down in the short run when average variable cost is greater than the price. When the firm shuts down, zero unit of output would be produced.

The short run is a period when at least one factor of production is fixed. When a firm shuts down, no revenue is earned by the firm incurs fixed cost.

To learn more about when a firm should shut down, please check: https://brainly.com/question/13034691

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