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Firms making a loss will compare the losses if it shuts down to the losses if it operates in the short run. What quantity will the firm produce if it shuts down in the short run

Sagot :

The quantity that would be produced by a firm that shuts down in the short run is zero units.

When would a firm shut down in the short run?

The short run is a period when at least one or more factors of production are fixed and the others are variable. In the short run, if the average variable cost is greater than the price, the firm should cease production. This means that zero units of output would be produced.

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

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