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ECO 365 Week 2 DQ 1 Under what conditions will a firm shut down operations




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Under what conditions will a firm shut down operations in the short run? Identify an
example you are familiar with, or have identified through research, of a business that has
temporarily shut down operations in the short run. What led to this decision? Did the firm
resume operations at a later date?
Technological advances to retool production lines with automation are a condition to shut down.
A safety or maintenance stand down to incorporate new safety protocol requirements into day-to-
day operations or to reestablish existing standards due to multiple infractions. The Marine Corps
and other defense departments have shutdown operation to adjust technique, policy, and standard
operation procedures (SOP) in staggered increments as to not disrupt overall functionality. The
decision was based on welfare and quality of life, media exposure, and the right thing to do
considering the circumstances. There is no need for loss of life outside a theater of operation;
training should never be an excuse for the death of our young men and women.
Another condition firms shut down for short run adjustments is alcohol and alcohol related
deaths on the job. This affects the firm’s ability to maintain production levels. Individuals
(variable inputs) drinking on the job reduces productivity and threatens the lives of others. This
is a gregarious problem spanning workforces alike.

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