... have to shutdown to keep the price at this level, which induces a shift in of the short-run supply, to SRS1. Then there is QP SRS0LRSD0D1SRS2McAfee: Introduction to Economic Analysis, ... needed to complete the analysis. First, there is the notion of the short-run average cost of production, which we obtain by dividing the total cost by the quantity: McAfee: Introduction to Economic ... cost. To see this, let C(q) be total cost, so that average cost is C(q)/q. Then the minimum of average cost occurs at the point satisfying: MCATCAVCqp McAfee: Introduction to Economic Analysis, ...