We shutdown the business if producing units will cause us to lose more money.

Concept #1: Short Run Shutdown Decision

Concept #2: Short Run Shutdown Decision (continued)

Concept #3: Short Run Shutdown Decision on the Graph

Practice: The price for a pair of edible underpants is $50. In the short-run, the firm should: 

Practice: The price for a pair of edible underpants is $50. In the short-run, the firm’s total revenue is: 

Practice: The price for a pair of edible underpants is $50. In the short-run, the firm’s profit (or loss) is: 

Practice: The firm shuts down at any price below: 

Practice: What is the least amount of output, assuming the firm does not shut down? 

Practice: If the price falls from P4 to P3, then output will decrease by