Microeconomics-Short Run - Academia Essay Writers

Microeconomics-Short Run

Microeconomics-Short RunUnder what conditions will a firm shut down operationsin the short run? Identify an example you are familiar with, or have identifiedthrough research, of a business that has temporarily shut down operations inthe short run. What led to this decision? What did the firm due during theshutdown period? Did the firm resume operations at a later date?250 words   ………….Answer Preview…………Shut down decisions The management of an organization usually prefers to shut down the operations of the business when the organization is indifferent between enduring operations and closing down temporary. This has an implication that when the firm decides to shut down the operations then, the management cannot avoid its fixed costs. The firm can therefore resume the operations when the market conditions improve (Gans, 2011).A firm will make such a decision of shutting down of the operations when the marginal revenue is below the average variable cost at the…APa284 words  as low as4.00 –  Added to cart

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