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When analyzing the short-run decision-making of firms, economists argue that it is not always rational to temporarily shut-down a production plant when the industry's product
When analyzing the short-run decision-making of firms, economists argue that it is not always rational to temporarily shut-down a production plant when the industry's product price falls below the average total cost of production. Instead, economists recommend that managers perform "shutdown point analysis" before making any decisions to continue production or shut down operations. Completely explain the economic rationale behind shutdown point analysis
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