A firm's price is above its minimum average variable cost but below its average total cost. According to the source, what should this firm do in the short run, and in the long run?

1. Price above minimum average variable cost means the firm can keep operating in the short run, since it covers all variable costs and part of fixed costs. 2. Price below average total cost means the firm is still losing money overall, since it is not covering the full cost of production. 3. The source draws exactly this distinction: continue producing in the short run, since fixed costs are sunk, but exit in the long run once those fixed-cost obligations can be escaped. 4. Shutting down immediately would throw away the short-run gain from covering variable costs and part of fixed costs, which the source explicitly recommends against here. _Source: OpenStax Principles of Microeconomics for AP Courses (CC BY 4.0), Ch 8 "Perfect Competition", section 8.2 | How Perfectly Competitive Firms Make Output Decisions_