Problem 1: When demand is weak, the firm will have the option of shutting down in the short run. But what condition must be met for it to make sense for the firm to shut down? If this condition was met, how would the firm benefit by shutting down?
Problem 2: Furthermore, what if the weak demand continued in the long run? What do you change about the short run condition if the firm is acting in the long run? How would this option benefit the firm?