Monday, March 28, 2011

Commercial Fishermen Shutting Down

Many commercial fishermen are choosing not to fish and leave their fishing boats tied at the dock. This is an unfortunate circumstance, but good economic example of shutting down. In fact, one of the fishermen interviewed stated, ..."We can only catch so much, and the price for the fish doesn't cover the fuel we burn each day."

Notice that the price is less than the average cost of fuel (a variable cost), so it is in the best interest of those commercial fishermen to shut down.

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