Studentshare
Subjects
Macro & Microeconomics
Should the firm shutdown immediately or should continue operating

Should the firm shutdown immediately or should continue operating - Assignment Example

Add to wishlist

Summary

It aims to assist management in deciding whether to shut down operations or continue it if the firm is operating at a loss. The example and…

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER97.9% of users find it useful

Should the firm shutdown immediately or should continue operating

Read Text Preview

Subject: Macro & Microeconomics
Type: Assignment
Level: High School
Pages: 4 (1000 words)
Downloads: 3
Author: olubowitz

Extract of sample "Should the firm shutdown immediately or should continue operating"

Download file to see previous pages

3. For one of the cases, if the firm can operate at a loss in the short-run, how many employees need to be laid off in order for the company to break even? To calculate the number of workers to be laid off, divide the loss for the two situations by the daily wage per worker. It is possible that the workers can increase their productivity through overtime work or working two shifts. However, this would also entail additional variable cost because of the overtime pay that must be given to them.

If we assume that the workers have not yet maximized their full potential, their productivity can still improve. The company can offer incentives to increase their

...Download file to see next pages Read More

Cite this document

APA
MLA
CHICAGO

(“Should the firm shutdown immediately or should continue operating Assignment”, n.d.)
Should the firm shutdown immediately or should continue operating Assignment. Retrieved from https://studentshare.org/macro-microeconomics/1579837-should-the-firm-shutdown-immediately-or-should-continue-operating

(Should the Firm Shutdown Immediately or Should Continue Operating Assignment)
Should the Firm Shutdown Immediately or Should Continue Operating Assignment. https://studentshare.org/macro-microeconomics/1579837-should-the-firm-shutdown-immediately-or-should-continue-operating.

“Should the Firm Shutdown Immediately or Should Continue Operating Assignment”, n.d. https://studentshare.org/macro-microeconomics/1579837-should-the-firm-shutdown-immediately-or-should-continue-operating.

Cited: 0 times

CHECK THESE SAMPLES OF Should the firm shutdown immediately or should continue operating

Production And Perfect Competition - Market Activity

should the firm shutdown immediately when the total fixed cost equals $1,000,000?... should the firm shutdown immediately when the total fixed cost equals $3,000,000?... 1 of the above section, it can be apparently observed that for case B, the firm will have to incur a huge loss of $2,400,000 and therefore should shutdown immediately.... 3: Other Variances As can be observed with reference to the above illustrated calculations for both the cases A and B, the firm is projected to witness significant changes in terms of its losses incurred....

4 Pages (1000 words) Coursework

Persuasion and Public Opinion

This paper aims to discuss the US government shutdown which took place on October 1, 2013, when the new fiscal year was started without a budget plan.... In order to further understand the real reasons for the shutdown it is important to first analyze the Care Act of President Obama which is primarily responsible to ensure affordable healthcare throughout the nation.... Obama Care became the main cause of shutdown in October 2013 because the Republicans were aiming to defund it....

9 Pages (2250 words) Assignment

Emergency Plan For Ashford University

This area is known for its high incidences of strong storms, which produce violent tornadoes, and flooding that is a constant danger to local residents and students… There is thus a need to develop a comprehensive emergency plan for Ashford University.... In order to undertake the preparation of an emergency plan for Ashford University, it is essential to have a good understanding of the intricacies and challenges This report is aimed at developing a comprehensive emergency plan in preparation for natural disasters at Ashford University's main campus, including incidences of flooding, tornadoes and heavy storms (Continuity of Government & Continuity of Operations, 2003)....

5 Pages (1250 words) Essay

Power Plants at Fukushima and Onagawa

However, all through the earthquake, Daini reactors were operating.... Normally, the reactors take a few day's time to cool down fully and reach the “cold shutdown” state (Holt, Campbell and Nikitin, 2012, p.... The paper 'Power Plants at Fukushima and Onagawa' presents Japan which experienced a devastating earthquake with a magnitude of 9....

8 Pages (2000 words) Term Paper

Financial Crisis of General Motors

The company has employee strength of 212,000 employees working at 396 facilities across six continents, speaking 50 different languages and operating in 23 times zones.... This case study "Financial Crisis of General Motors" describes the financial crisis that could have been avoided or at least minimized had the company been pro-active in managing change....

10 Pages (2500 words) Case Study

The Perfectly Competitive Firm

Any deviation from the market price will bring the firm back to the market price in a perfectly competitive situation.... Because a firm competes in a market where the price cannot be determined by any single firm as it is small enough to influence it, when the market price goes down and puts firms into losses, the firm in the short-run still has an incentive to continue on its operations rather than to completely shut down its business.... When a firm's revenue still produces enough to cover the amount of fixed costs for a certain level of price, the fixed costs is still smaller than what costs the firm when it shuts down....

7 Pages (1750 words) Essay

Initial Response, with Training Requirements, and Resources Needed

In this case, alarms should be distinctive and recognizable to all staff members in order to ensure that even the handicapped people were alerted.... This paper, Initial Response, with Training Requirements, and Resources Needed, stresses that the initial response plan will identify the personnel who have the ability to supervise the initial response to the fire....

21 Pages (5250 words) Essay

Safety and Environmental Project: Pertamina Petroleum and Energy Ltd

Pertamina Petroleum & Energy Ltd is such one firm that has put in place various programs to ensure it complies with the safety and environmental programs.... Pertamina Petroleum & Energy Ltd is such one firm that has put in place various programs to ensure it complies with the safety and environmental programs.... Industry overview Pertamina Petroleum & Energy Ltd is a petroleum refinery firm that is based in Indonesia....

9 Pages (2250 words) Case Study