This firm is losing $540,000 a day and should shut down without delay. But the firm should decide to function under the short run. Even though the total cost is included in the fixed cost and fixed cost must be still paid and since it cannot be changed in the short run the fixed cost is irrelevant and they need to decide to operate in the short run and not the long run. Even though fixed cost plays no role in the short run there are other factors and cost to consider and that is other costs and
