quicksilver9376 quicksilver9376
  • 23-01-2020
  • Business
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Suppose your favorite sports team is losing by an insurmountable score. What does the shutdown condition suggest the team should do

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BenitoMarin BenitoMarin
  • 23-01-2020

Answer and explanation:

In Economics, the shutdown conditions refer to the situation in which a company is not able to produce profits to at least cover the variable costs of production in the short term. According to this approach, only when those costs can be covered the company should continue to operate. Otherwise, the firm must shutdown.

In that case, if a team is losing by a score that cannot be surmountable, according to the shutdown condition the team must stop playing the game.

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