Thursday
April 24, 2014

Homework Help: managerial economics

Posted by jean on Monday, February 25, 2008 at 7:37pm.

At a recent board meeting, the president and CEO got into a heated argument about whether to shut down the firm's plant in Miami. The Miami plant currently loses $60,000 monthly. The president of the firm argued that the Miami plant should continue to operate, at least until a buyer is found for the production facility. The president's argument was based on the fact that the plant's fixed costs are $68,000 per month. The CEO exploded over this point in considering the shutdown decision. Accodring to the CEO, everyone knows fixed costs don't matter.
a. Should the Miami plant be closed or continue to operate at a loss in the short run?
b. How would you explain to the incorrect party that he or she is wrong?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

managerial economics - At a recent board meeting, the president and CEO got into...
Managerial Economics - At a recent board meeting, the president and CEO got into...
economics - At a recent board meeting, the president and CEO got into a heated ...
managerial economics - Several years ago, Nabisco spent $330 million building a ...
managerial economics - A firm uses a single plant with costs C= 160 +16Q +.1Q2 ...
Economics - A firm uses a single plant with costs C = 160 + 16Q + .1Q2 and faces...
ECONOMICS - A firm uses a single plant with costs C= 160 +16Q +.1Q2 and faces ...
Economics - You’ve been hired by an unprofitable firm to determine whether it ...
Business - Suppose you are an administrator at the Environmental Protection ...
intro of my essay - Nuclear power plants have been a controversy issue in our ...

Search
Members