Question Details

I need help to answer this DQ question plz .(300 words)
In today- economy many companies are shutting down their doors. Colander (2008) tells us that “the point at which price equals AVC is
the shutdown point ( that point below which the firm will be better off if it temporarily shuts down than it will if it stays in business )”.
 
Provide:
1)   An example of a company that has shut down during this economic downturn, and
2)   An explanation as to what you believe drove this company to shut down. In your explanation use the terms shutdown point, price, and average variable cost.


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