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At a recent Board meeting, the president Mr. Gokul and CEO Miss Ayami got into a heated argument about whether or not to shut down
At a recent Board meeting, the president Mr. Gokul and CEO Miss Ayami got into a heated argument about whether or not to shut down the firm's plant in Miami which faces perfect competition. The Miami plant currently bears TC of Rs. 60,000 out of which TFC is Rs. 25000. The plant is earning revenue of Rs. 30000. Explain the concept of shut down point. Should the Miami plant be closed down or continue to operate in the short run?
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