Week 2 dq 1.docx - Week-2 Discussion Post-1 This discussion post peeks on general assumptions and viewpoints explaining the time or the point where the

Week 2 dq 1.docx - Week-2 Discussion Post-1 This discussion...

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Week-2 Discussion Post-1 This discussion post peeks on general assumptions and viewpoints explaining the time or the point where the firm has to shut down and its equivalence in existing market. If the firm peeks on shutting down and does not produce any output, its revenue is zero. By definition the firm’s variable cost of production is also zero, so here the firm’s total cost of production equals the fixed cost. Hence, the profit of the firm is also zero. Besides, if the income from the sale of goods and services couldn't be able to overtake variable cost of a production, then a firm needs to actualize an operation shutdown. In the present business the production shut down is short term. however, when there is an enhancement for the state of the market as of the fall underway expense or increment in the cost of the product then the firm can again continue its production. However, if the shutdown period becomes extended for a period of time then the firm should have to decide whether to continue or level the production of business.
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