What is the difference between a firm's shutdown point in the short run and its exit...

 
 

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What is the difference between a firm's shutdown point in the short run and its exit point in the long run? In the short run, a firm's shutdown point is the minimum point on the OA. average variable cost curve, while in the long run, a firm cannot exit OB. marginal cost curve and and in the long run, a firm's exit point is the minimum point on the marginal cost curve. OC. average total cost curve and in the long run, a firm's exit point is the minimum point on the average total cost curve OD. average variable cost curve, while in the long run, a firm's exit point is the minimum point on the average fixed cost curve. OE. average variable cost curve, while in the long run, a firm's exit point is the minimum point on the average total cost curve. Why are firms willing to accept losses in the short run but not in the long run? OA. Sunk costs are larger in the long run than in the short run B. There are fixed costs in the short run but not in the long run OC. Firms cannot shut down in the short run OD. Firms are price takers in the short run but not in the long run OE. It is always profitable to incur losses in the short run because profits will always arise in the long run. What is the difference between a firm's shutdown point in the short run and its exit point in the long run? In the short run, a firm's shutdown point is the minimum point on the OA. average variable cost curve, while in the long run, a firm cannot exit OB. marginal cost curve and and in the long run, a firm's exit point is the minimum point on the marginal cost curve. OC. average total cost curve and in the long run, a firm's exit point is the minimum point on the average total cost curve OD. average variable cost curve, while in the long run, a firm's exit point is the minimum point on the average fixed cost curve. OE. average variable cost curve, while in the long run, a firm's exit point is the minimum point on the average total cost curve. Why are firms willing to accept losses in the short run but not in the long run? OA. Sunk costs are larger in the long run than in the short run B. There are fixed costs in the short run but not in the long run OC. Firms cannot shut down in the short run OD. Firms are price takers in the short run but not in the long run OE. It is always profitable to incur losses in the short run because profits will always arise in the long run.

Answer rating: 100% (QA)

Option E is correct response here In short run firm treats fixed cost as a sunk cost hence the produ... View the full answer