In the short run, if a firm shuts down it avoids its variable cost but not its fixed cost.

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In the short run, a firm may choose to shut down if the total revenue it generates cannot cover its variable costs, but it cannot avoid its fixed costs. Fixed costs are costs that don't vary with the level of production, such as rent or insurance payments, and must continue to be paid even if the firm shuts down. Therefore, in the short run, a firm that shuts down would avoid variable costs but not fixed costs.

In the Short Run, If a Firm Shuts Down It