Explain why a perfectly competitives firm will shut down in the short run.?
478450
Usually cash-flow.\n\nThe best companies simply can go insolvent when they are unable to pay debts even if they are a long term good prospect.  Banks have become less willing to finance future good performance.
1124057
Youre too young.  Your product will be poor quality and your business will fail.  Give it another thought in about a decade.
380978
Well, \n1.They close the competition down.\n2. It use to be the small business owner made up a big section of the middle class in this country.but now there are fewer small business....most are some kind of franchise.So the middle class has shrunk.\n3.They hire alot more people than what was employeed by the competition.at the same low pay scale.\n4. They are able to sell stuff for less..They have increased the supply of goods.\n5.They sale Junk (you uasualy get what you pay for) But usually meets the need for awhile.\n6.Their always open and more of the people can afford to shop there... \n\nSo over all It's a love /hate relationship.\n   It's tuff but their on top so they must be doing something right..
384270
Well it NEVER is a good sign when a company gets delisted off the stock exchange. To put it bluntly, kicked off. Even before they stopped trading completely (on what they call the pink sheets) the stock price never went beyond $1.03 a share. I tried to look at their financial statement on their web site but low and behold no financials? The news on this company is so sparse that there is no way I would invest based upon the way the management is hiding all relevant information on the company except of course their statement they will be relisted on the exchange soon.
845880
It sounds normal for an average UK company to do that. Some will have policies in place to provide additional income but this is unlikely to kick in after just 6 months.
553660
because they think that once trade opens, nig buisnesses will come in and try to take over the small family owned buisnesses, which will happen. it's sort of like how walmart moves from town to town, shutting down small buisnesses.
165070
Redundant employees get fired\nIf you have factory working 24 hours a day at 50% of capacity in Company A and another factory working 24 hours a day at 50% of capacity in Company B you modify one to also produce whatever the other factory is producing and you increase the production to 100% and close the other factory. \nYou usually sell parts of the company that you don't want. For example when Pfizer bought Warner Lambert. They bought it because the wanted the drug business and they sold the Chiclets Adams to another company.\nPolitics change in the acquired company. Some companies has properties and some companies lease properties. If the big company leases and small company owns then they start selling all the properties (And after they have sold they pay rent to the new owner)
792933
No. Almost 100% of such companies have closed down.
284020
It means their business would go kaput if they were not to take care of their customers. Because in this world of high level competition if customers are not taken care of  or are neglected then some other competitor would try and take away the customer for sure.
1032945
Companies don't do themselves damage by retrenching. They become more profitable. You increase the size of the team during boom times to get more business, then cut down when the economy droops to maximise the new client base.\n\nSome studies suggest that making it easier for companies to hire and fire creates more jobs in the long term. Countries that make it difficult for companies to retrendh have very slow job growth rates.
1029778
It could put some small companies out of business....?
581075
From the choices, it looks like A.  Decrease.\n\nWith lower margins (see monopoly versus perfect competition), the profits slim down over time and there's less room for individual growth even with the total size of the industry increasing.
581264
If I need a pair of shoes, and I couldn't get any because the factory that makes them had to close down, that would be a bummer! \n  Ok, that sounds selfish, but think of it this way. Any time a factory has to close down, an employee is out of work, we can't get the products we need, etc.\n  It is a good idea in theory, but in reality as we know it, it some flaws. It would probably be better to try and develop cleaner methods of running these factories.
79121
Competition in most fields not heavily regulated by the government is much higher.\n\nIn many cases, managment didn't adapt, and those businesses shrank or were bought.
1168888
Falling prices.\n\nYou just have to be careful not to get hit by falling merchandise though.
1028748
My guess is that the owners are not re-examining basic business plan assumptions.  Time to get creative, obviously something about the basic financial model of a chinese restaurant at this location isn't working.... so the cash flow isn't sufficient to sustain the operation.   Anyone taking over the location needs to check out the neighborhood, traffic patterns, demographics and develop a very specific financial plan that matches the facts.  A lot of people go in "with a hope and a prayer", and that's not a smart way to start a business.
452523
they are in the process of diversifying it.  they need to because the growth of what they are currently doing will eventually slow, which will crush their share price.