If revenue in the short run is less than variable costs, what ...

[altibaby]

If revenue in the short run is less than variable costs, what should the firm do??
 
  What will be an ideal response?

Question 2

What does it mean if an industry has external economies?
 
  What will be an ideal response?

[sarahccccc]

Answer to Question 1

The firm should shut down to minimize losses (i.e., loss equal to fixed costs only).

Answer to Question 2

There are external economies in an industry if long-run average costs fall as the size of the industry increases.

[altibaby]

Excellent

[Kedrick2014]

Thanks for the timely response, appreciate it