Kraft Heinz is closing its plant in St. Marys, Ontario, believed to employ some 200 people. In
Question:
Source:
Canadian
Manufacturing,
November 5, 2015
Was Kraft Heinz making a shutdown or exit decision?
Under what conditions will this decision maximize Kraft Heinz's economic profit?
How might Kraft Heinz's decision affect the economic profit of other firms?
This decision maximizes Kraft Heinz's economic profit if ______.
A. a shutdown; market price is less than average total cost
B. a shutdown; market price is less than average variable cost
C. an exit; other producers also leave the market
D. an exit; market price is less than average total cost
Kraft Heinz's decision will _______ the economic profit of other firms.
A. decrease
B. have an unknown effect
C. have no effect
D. increase
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr