gap to close 175 stores in north america Gap announced that it will close 175 (nearly 26 percent) of its North American stores. It will terminate an unknown number of workers and cut 250 headquarters jobs.

Source: The Washington Post, June 15, 2015 Thinking of a Gap store as a unit of capital, explain why Gap is reducing the number of stores and workers. Is Gap making a long-run decision or a shortrun decision? Is Gap taking advantage of economies of scale?