MICROECONOMICS The Pandemic hurt business at restaurants. A Faneuil Hall landmark closed: Durgin-Park — which has been in operation since 1827, under the Durgin-Park name since 1877 — will cease to exist. The Union Oyster House, located on the Freedom Trail, near Faneuil Hall, enjoys the unique distinction of being America's oldest restaurant. This Boston fixture, housed in a building dating back to Pre-Revolutionary days, started serving food in 1826 and has continued ever since although business has been much less than in past years.
The Pandemic hurt business at restaurants.
A Faneuil Hall landmark closed: Durgin-Park — which has been in operation since 1827, under the Durgin-Park name since 1877 — will cease to exist. The Union Oyster House, located on the Freedom Trail, near Faneuil Hall, enjoys the unique distinction of being America's oldest restaurant. This Boston fixture, housed in a building dating back to Pre-Revolutionary days, started serving food in 1826 and has continued ever since although business has been much less than in past years.
1.Use the concepts of fixed and variable costs to explain why Durgin Park closed but the Union Oyster House also operating at a loss, was able to remain open.
2.When a firm is “temporarily closed” (the firm shuts down) does the firm eliminate all of its costs of production? Briefly explain your answer.
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