Kraft Heinz is closing its plant in St. Marys, Ontario, believed to employ some 200 people. In 2013, Heinz closed its century-old plant in Leamington, Ontario, laying off around 740 people. After these closures and others in the United States, Kraft Heinz will have 41 plants in North America that employ about 18,000 people.

a.Was Kraft Heinz making a shutdown or exit decision?

b.Under what conditions will this decision maximize Kraft Heinz's economic profit?

c.How might Kraft Heinz's decision affect the economic profit of other firms?