! Staples Closing Another 70 Stores as North American Sales SinkStaples closed 48 of its North American stores in 2016 and will close another 70 in 2017. Thefirm has expanded its e-commerce, and has focused on buying small business-to-businessservice providers beyond office supplies companies that employ 10 to 200 employees. It hasadded 1,000 people to its sales force. (Source: Fortume, March 9, 2017)a. Which of Staples' decisions described in the news clip is a short-run decision and which isa long-run decision?b. Why is Staples' long-run decision riskier than its short-run decision?c. Explain how Staples' short-run decision will change its average variable cost and its short-run ATC curve. Explain how Staples' long-run decision will change its total fixed cost and itsshort-run ATC curve.

Given information Staple already closed 48 units in NA in 2016 and planning to close 70 in 2017.…

Staples closed 48 of its North American stores in 2016 and will close another 70 in 2017. The firm has expanded its e-commerce, and has focused on buying small business-to-business service providers beyond office supplies companies that employ 10 to 200 employees. It has added 1,000 people to its sales force. (Source: Fortune, March 9, 2017) a. Which of Staples' decisions described in the news clip is a short-run decision and which is a long-run decision? b. Why is Staples' long-run decision riskier than its short-run decision? c. Explain how Staples' short-run decision will change its average variable cost and its short- run ATC curve. Explain how Staples' long-run decision will change its total fixed cost and its short-run ATC curve.

Staples closed 48 of its North American stores in 2016 and will close another 70 in 2017. The firm has expanded its e-commerce, and has focused on buying small business-to-business service providers beyond office supplies companies that employ 10 to 200 employees. It has added 1,000 people to its sales force. (Source: Fortune, March 9, 2017) a. Which of Staples' decisions described in the news clip is a short-run decision and which is a long-run decision? b. Why is Staples' long-run decision riskier than its short-run decision? c. Explain how Staples' short-run decision will change its average variable cost and its short- run ATC curve. Explain how Staples' long-run decision will change its total fixed cost and its short-run ATC curve.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.5IP

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