The Firm's short-Run decision to shut down Costs Firm's short-run supply curve MC IfP> ato keep producing at a profit. aTC IfP> AVc keep producing AVC in the short run 0。00。。0。00。。0 IfP<AVCI shut down 0 QuantityQuantity ATC AVC 0 Costs MC If P < AVC, shut down. If P > AVC, keep producing in the short run. If P > ATC, keep producing at a profit. Firm’s short-run supply curve. The Firm’s Short-Run Decision to Shut Down