Mitsubishi to Close U.S. Auto Plant Mitsubishi Motors will close its production plant in Normal, Illinois. Dwindling sales in North America have brought a loss in the region of $200 million in the current year. The plant ended production of its Outlander Sport SUV model in November, laying off 1,000 workers.

a. Is Mitsubishi making a shutdown or exit decision in the automobile market?

b. Under what conditions will this decision maximize Mitsubishi’s economic profit?

c. How might Mitsubishi’s decision affect the economic profit of other auto producers?