If the shutdown rule, p < AVC, is the same in the short run and the lo

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?   ANSWER

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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