a branch office or business segment that shows negative operating income should be shut down do you agree explain briefly select one a no for example if the revenue that will be lost exceed the cost that will be saved it the branch or business segment should not be shut down shut it down will only increase the loss B yes if the branch or business segment shows negative operating income it should be shut down without considering other factors shutting down will stop a drain on the company resources

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...
Question
None
a branch office or business segment that shows
negative operating income should be shut down
do you agree explain briefly select one a no for
example if the revenue that will be lost exceed
the cost that will be saved it the branch or
business segment should not be shut down shut
it down will only increase the loss B yes if the
branch or business segment shows negative
operating income it should be shut down
without considering other factors shutting down
will stop a drain on the company resources
Transcribed Image Text:a branch office or business segment that shows negative operating income should be shut down do you agree explain briefly select one a no for example if the revenue that will be lost exceed the cost that will be saved it the branch or business segment should not be shut down shut it down will only increase the loss B yes if the branch or business segment shows negative operating income it should be shut down without considering other factors shutting down will stop a drain on the company resources
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