Universal Shutdown Rule
The firm shuts down "only if its revenue is less than its avoidable costs."
Read more about this topic: Shutdown (economics)
Famous quotes containing the words universal and/or rule:
“The basis of world peace is the teaching which runs through almost all the great religions of the world. “Love thy neighbor as thyself.” Christ, some of the other great Jewish teachers, Buddha, all preached it. Their followers forgot it. What is the trouble between capital and labor, what is the trouble in many of our communities, but rather a universal forgetting that this teaching is one of our first obligations.”
—Eleanor Roosevelt (1884–1962)
“The earliest instinct of the child, and the ripest experience of age, unite in affirming simplicity to be the truest and profoundest part for man. Likewise this simplicity is so universal and all-containing as a rule for human life, that the subtlest bad man, and the purest good man, as well as the profoundest wise man, do all alike present it on that side which they socially turn to the inquisitive and unscrupulous world.”
—Herman Melville (1819–1891)