ll market firms must be able to answer the following three questions. 1. How much output should we produce? 2. What Price should we charge? 3. If we are making a loss, should we shut down or continue to operate? Let look at the Decision Rule for the decision to shut down or continue to operate. The decision rule in your study explains that the firm should continue to operate if TR (Total Revenue) is greater than TVC (Total Variable Costs) (TR>TVC), and Shut Down if TR < TVC. How does this relate to operation in the short run vs the long run operation? (Hint: notice the decision rule regards TVC & remember R=P*Q). In the long run, are all Costs Variable?