Asked by
Balqis Nadhirah
on Nov 16, 2024
Verified
Suppose a firm is considering producing zero units of output. We call this shutting down in the short run and exiting an industry in the long run.
Exiting an Industry
The process whereby businesses cease operations in a specific sector due to various reasons, such as unprofitability, strategic realignment, or market saturation.
Shutting Down
A short-term decision by a firm to halt production due to market conditions, not necessarily implying going out of business.
- Comprehend the concepts related to the cessation and discontinuation of a business in both short-term and long-term scenarios.
Verified Answer
CH
Learning Objectives
- Comprehend the concepts related to the cessation and discontinuation of a business in both short-term and long-term scenarios.