Key Diagrams - Long Run Shut Down Price
- A-Level, IB
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 2 May 2022
This revision video walks through the diagram showing the long run shut down price for a business.
A business needs to make at least normal profit in the long run to justify remaining in an industry. This is where AR = AC.