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Business should shut-down permanently

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Earlier in the semester, we learned that a business should shut-down permanently when they will lose more money operating than their fixed cost loss of shutting down. Because of the government ordered shut-downs and fear of the virus, many restaurants are currently in this situation. If the owner expects that business in the future will improve as the legal shut-downs are lifted and perhaps the virus will recede in the summer (as is common with the flu) and a vaccine might be ready by the winter, is it necessarily the right choice for the owner to permanently shut-down his business now? Answer "Yes" or "No" and explain why.

Reference no: EM132511841

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