Shut-Down Decisions Worksheet

Shut-Down Decisions Worksheet
Shut-Down Decisions Worksheet
Shut-Down Decisions Worksheet
Shut-Down Decisions Worksheet
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This worksheet requires students to use cost curves for a firm in order to predict it's profitability at various prices. In addition it requires students to consider whether, when the firm is earning negative economic profits, the firm would be better off operating at a loss in the short run or shutting down and simply paying their fixed costs.

It is meant to help students easily identify whether a firm is earning positive or negative profits (or just breaking even) as well as understand the shut-down rule as it relates to the product's price and the firm's average variable costs (operate so long as P > AVC).
Total Pages
1 page
Answer Key
Included
Teaching Duration
50 minutes
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