Shut-Down Situations in the Short-Run
a) When AR< AC but AR is still greater than AVC.
(Or AVC lies below P = MR = AR = D)
If the firm continues production,
TR = ______
TC = ______
LOSS = ______
If the firm shuts down,
TFC = LOSS = ______
b) When AR < AC as well as AVC
(Or both AC and AVC curves lie above P = MR = AR = D)
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