The "Shut-down Rule" - When should a firm shut down in the face of economic losses?

This lesson illustrates two situations in which a firm in a perfectly competitive market is earning economic losses. In one case, the losses are less than the firm's total fixed costs. In another, the firm's losses exceed its fixed costs, meaning the firm is better off shutting down.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! econclassroom.com/?page_id=5870

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[@truman5560]

What if the marginal revenue curve passes through the intersection between AVC and ATC curve? does the firm shut down or remain in business?

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when will a firm earn a profit or incur a loss in competitive market? please answer me as soon as possible

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Why firm suffer loss because of high cost production can some one explain this to me

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In short run, if price < AVC then shut down. In long run if price < ATC then shut down. Am I right?

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[@SelfStirringPot-com]

I earn 2 million profit but 0$ economic profit each year. I am leaving the market. Am I (a) a socialist (b) kicked in head by mule (c) follower of Keynesian economics (d) run a government owned company (e) all of the above

[@selbymasekela]

Thank you