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Selmira lives in a small town of Townsville. Townsville is known for its schooling system and there are multiple schools (public and private) in the
Selmira lives in a small town of Townsville. Townsville is known for its schooling system and there are multiple schools (public and private) in the town. Selmira sells candy in the town and she has recently won the "Candy Connoisseur of the Year 2021" award for her unique products. She has recently rented a bigger place to expand her business, and this should be operating from April 2022. She signed the lease for the new place starting from March 2022 and her old lease for the small store ends in March, 2022 as well. Selmira is now faced with two choices that she needs to make. Either keep operating in the old place until the lease ends or not. Given that, she has to incur new costs for renovation in the new store it will not provide her with a positive profit if she keeps on producing in the old small store. However, whether she produces candy or not, she has to pay the rent for the smaller store till the end of March 2022. Under what circumstances will Selmira keep on producing in the old store and selling candy with a negative profit? Explain why would she choose to do that
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