The Pandemic hurt food related tourist dependent businesses in Boston.

Magnolia Bakery(4 S. Market St., Quincy Market, downtown Boston), the New York City bakery famous for its cupcakes and banana pudding, opened its only Boston location at Quincy Marketin March 2018. It closed temporarily at the start of the pandemic but a rep now confirms that the closure is permanent. The company continues to operate locations in New York, California, Illinois, Asia, and the Middle East.

• Explain, using fixed and variable costs , why Magnolia bakery closed in Boston but the other locations also operating at a loss during the pandemic, were able to remain open.
• When a firm is "temporarily closed" (the firm shuts down) does the firm eliminate all of its costs of production? Briefly explain your answer.

Can you please ans the two questions.

• Use the concepts of fixed and variable costs to explain why Magnolia Bakery would close in Boston during the Pandemic but at other locations also operating at a loss was able to remain open.
• When a firm is "temporarily closed" (the firm shuts down) does the firm eliminate all of its costs of production? Briefly explain your answer.