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QUESTION

Watch this video about the short-run shut down decision: https://www.youtube.com/watch?

Watch this video about the short-run shut down decision: https://www.youtube.com/watch?v=7XDEo2o-wm0&index=2&list=PLMrpXL7ZxXYXIStJLFOAoYv2hPDhXMNQB

why in the short run a firm may continue to produce even at a loss provided the price is more than the average variable cost. Also, provide an example (not from the video) of when a firm might face this decision. (Hint: Think about how fixed and variable costs may affect shut-down decisions.) give some suggestion in own text

please watch the video and give your view on citing example and some ideas

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