W6_ProfitsandGoingOutofBusiness-ECON101D008Fall2022.pdf

1/12/23, 6:08 AM W6: Profits and Going Out of Business – ECON101 D008 Fall 2022

https://myclassroom.apus.edu/d2l/le/73716/discussions/topics/639181/View 1/1

W6: Profits and Going Out of Business

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ECON101 D008 Fall 2022 LE

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Why might a profitable motel go out of business in the long run if the land onwhich it is located becomes extremely valuable due to surrounding economicdevelopment? What kinds of costs are involved in making a decision to shutdown?

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