Design Layout References Mailings Review View Zotero Add-ins Help Grammarly Writer's Manual Tools TVA Procedures Average variable cost (AVC) = TVC/Q Average variable cost (AVC) = 15000/300 = 50 Average variable cost (AVC) =50 The price($300) is more than average variable cost ($50), showing that the firm should not shut down. 7. Should the firm shut down in the long run? Explain in detail why or why not. 8. Airline industry experts generally believe that because of the "highly competitive" nature of U.S. airline markets, it is usually impossible to pass on higher jet fuel prices to passengers by raising ticket prices. What factors do you suppose contribute to making U.S. airline markets "highly competitive"? Accepting the premise that U.S. airline markets are indeed highly competitive, analyze in both the short run and long run the difficulty of raising ticket prices when jet fuel prices rise