The Firm´s Entry, Exit, and Shutdown Decisions If the price is below the minimum of the AVC curve, then the firm should shut down (produce 0 as shown by the red curve) and exit as soon as possible (asap). If the price is above the AVC curve but below the AC curve, then the firm should produce the quantity such that P = MC (along the yellow curve) but exit asap. If the price is at or above the AC curve, the firm should remain within the industry producing where P = MC or enter if it is not already in the industry.