Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

The president and CEO of a company got into an argument recently about whether to shut down the firm's operations in Atlanta. The Atlanta site loses $60,000 monthly. The president of the firm argued that the site should continue to operate until a buyer is found for the facility because fixed costs for the facility are $68,000 monthly. The CEO responded that fixed costs do not matter in the shutdown decision and operations at the Atlanta facility should stop immediately. Who is correct? How would you describe to the incorrect party why he or she is wrong?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M961950

Have any Question?


Related Questions in Microeconomics

Question abc explosives has purchased fire nsurance for its

Question: ABC Explosives has purchased fire nsurance for its factory. It can institute a fire prevention program, which would cost $90, but which would lower the probability of a fire from 0.01 to company cannot determin ...

Question in the tradeoff between economic output and

Question: In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent? The response must be typed, single spaced, must be in times new roma ...

Question some critics of discretionary monetary policies

Question: Some critics of discretionary monetary policies used by central banks suggest that there are lag problems in the timing of monetary policy, and there are problems with time inconsistencies, credibility and comm ...

Question a commercial real estate developer plans to borrow

Question: A commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive area of the city. The developer plans to get a loan that will be repaid with uniform payments of exist400,000 ...

Question write a brief essay minimum 250 words on the

Question: Write a brief essay (minimum 250 words) on the following: You've read about the price elasticity of demand. Much as the price elasticity of demand applies to products, it can also be applied to individual brand ...

Question in mid-2002 real growth fell from 5 in the first

Question: In mid-2002, real growth fell from 5% in the first quarter to 1% in the second quarter, and the unemployment rate continued to rise. The stock market was down over 20%. Inflation was stable at about 2%. Many pe ...

Question the financial crisis of 2007-2008 is considered by

Question: The financial crisis of 2007-2008 is considered by many economists to be the worst financial crises since the Great Depression of the 1930s. While both economists and non-economists have debated what the actual ...

Question the cities of peabody and woburn are five miles

Question: The cities of Peabody and Woburn are five miles apart. Woburn enacts a rent control law that puts a ceiling on rents well below their competitive market value. Predict the effect of this law on the competitive ...

Question discuss and analyze the following even though

Question: Discuss, and analyze the following: "Even though fixed costs do not affect the output decision, an increase in fixed costs results in a wider range of prices for which the firm operates at a loss." The response ...

Question shortly before the uk devalued the pound sterling

Question: Shortly before the UK devalued the pound sterling in 1968, Prime Minister Harold Wilson was heard to remark that the first time a Labour prime minister devalued the pound, the party was out of power for 14 year ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved