If the shut-down rule, p < AVC, is the same in the short run and the l

If the shut-down rule, p < AVC, is the same in the short run and the long run, explain why the shut-down prices may be different. What will be an ideal response?   ANSWER

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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