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
A. average variable cost curve, while in the long run, a firm cannot exit
B. average total cost curve and in the long run, a firm's exit point is the minimum point on the average total cost curve.
C. average variable cost curve, while in the long run, a firm's exit point is the minimum poipt on the average total cost curve
D. marginal cost curve and and in the long run, a firm's exit point is the minimum point on the marginal cost curve.
E. average variable cost curve, while in the long run, a firm's exil point is the minimum point on the average fixed cost curve
Why are firms willing to accept losses in the short run but not in the long run
A. There are sunk costs in the short run but not in the long run.
B. It is always profitable to incur losses in the short run because profits will always anse in the long run.
C. Firms cannot shut down in the short run
D. Fixed costs are larger in the long run than in the short run
E. Firms are price takers in the short run but not in the long run
