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April 20, 2014

Homework Help: managerial economics

Posted by Nemin on Wednesday, September 21, 2011 at 9:32pm.

Several years ago, Nabisco spent $330 million building a facility in Brazil to
produce Oreo cookies and Ritz crackers for sale in their South American markets.
At a recent board meeting, managers at Nabisco were discussing closing the
Brazilian plant because profits from South American sales declined sharply last
year. One senior vice president opposed shutting down the Brazilian plant saying,
“We spent so much money getting our Brazilian facility going, we just can’t quit
now.” Evaluate the vice president’s advice. Explain why you agree or disagree.

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