GM Rejects Effort to Save Factory in Can- ada, Cutting 2,500 Jobs GM announced on Nov. 26

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GM Rejects Effort to Save Factory in Can- ada, Cutting 2,500 Jobs GM announced on Nov. 26 that it planned to close its assembly plant in Oshawa by the end of 2019, eliminating about 2,500 jobs. The Oshawa plant makes the Chevrolet Impala and Cadillac XTS, some of the traditional cars GM is elimi- nating in the move towards more in-demand and profitable pickups and SUVs Source: Detroit Free Press, January 9, 2019

a. Is GM making a shutdown decision or an exit decision?

b. Under what conditions would this decision maximize GM's economic profit?

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