Question

Tember Takes Axe to Jobs, Costs Tembec will permanently dose des sawmill in Mattawa, Ont, which has been idle since July. Earlier, Tembec shut down temporary facilities in four Canadian provinces in response to depressed market conditions for kember, pule and newsprint Tembec has also embarked on a cost reduction initiative with suppliers Source: Montreal Garelle February 11 Under what conditions will Tembec exit the smiling market? Tembec will make the shown permanent and eat the market il On theme so exiting the market OB. faces the prospect of person con los OC. price is less than average variate OD is forced to lay off more workers

Answer 1

C) If price has fallen less than average variable cost.

The minimum average variable cost is shutdown point.