Question

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. marginal cost curve and in the long run, a firm's exit point is the minimum point on the marginal cost curve

C. average total cost curve and in the long run, a firm's exit point is the minimum point on the average total cost curve

D. average variable cost curve, while in the long run, a firm's exit point is the minimum point on the average fixed cost curve

E. average variable cost curve, while in the long run, a firm's exit point is the minimum point on the average total cost curve.