Business Finance
Profits and the Shut Down Decision

Question Description

Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? What kinds of costs are involved in making a decision to shut down? Your answer myst be NO LESS THAN 300 WORDS. Cited using APA.

Final Answer

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Running head: PROFITS AND THE SHUTDOWN DECISION

PROFITS AND THE SHUTDOWN DECISION
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1

PROFITS AND THE SHUT DOWN DECISION

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PROFITS AND THE SHUTDOWN DECISION
A business makes a decision to shut down if it can no longer continue to sustain its
operations in the market. The following factors might cause a profitable motel shut down in the
long run if the land on which it is located becomes extremely valuable due to surrounding
economic development.


Stiff competition
The surrounding economic development implies that many investors have established

many businesses within the locality if the motel. Some of the inv...

JesseCraig (16220)
University of Maryland

Anonymous
Return customer, been using sp for a good two years now.

Anonymous
Thanks as always for the good work!

Anonymous
Excellent job

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