What is the shut down rule in the short run? What is the shut down rule in the long run?© BrainMass Inc. brainmass.com September 18, 2018, 5:45 pm ad1c9bdddf - https://brainmass.com/business/strategy-and-business-analysis/define-the-terms-long-run-and-short-run-410119
"In economics the short run is defined as a period of time when at least one of the four factors of production is fixed in supply. Remember that the four factors are, land, labour, capita and entrepreneurship. "
(Chris Rodda 2004, www.cr1.dircon.co.uk/TB/2/shortandlongrun.htm)
"The simple rule for short run shut down in perfect competition is:
If P > AVC operates in the short run:
If price is above ...
This soultion provides insight into the the definition of Short and Long Run