Answer :
If the market price is above or equal to the average variable cost, but below the average total cost the firm should keep producing in the run even though it does so at a loss.
When should a firm shut down production?
A firm should continue production in the short run if the price is above the average variable cost even if price is below the average total cost. The short run is a period when at least one or more factors of production are fixed.
To learn more about when a firm should shut down, please check: https://brainly.com/question/13034691