Question: Suppose, after graduation, you take a job in a factory in Chile that produces faux leather shoes. One d boss comes in and says, "this factory isn't operating at a profit and so we can minimize our losses by 0 shop." Yikes! You didn't think you'd lose your job that quickly. Your boss continues talking and states tl company is having to pay 300,000 pesos a month for rent, interest on debt, and other non-avoidable co also says that it costs 150,000 pesos a month just to pay you and all the other workers, including paying for raw materials, to produce the shoes. He states that at current production of 5000 boxes of shoes a mo company can only expect to get 40 pesos per box of shoes.

1. IN THE SHORT RUN — do you agree with your boss that the company should close up shop? Why
2. IN THE LONG RUN -- do you agree with your boss that the company should close up shop? Why 0| Please present your arguments and what you would do if you were the boss.

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