Point of correction. Hutakiwi kuendelea ku produce simply because una cover your variable cost kwani bado unaweza ku produce at a loss kwa kutoku cover fixed cost. Unatakiwa kuendelea ku produce from break even point and above.
Nimesema "UNAWEZA" kuendelea kuzalisha provided una-cover TVC na hiyo ni rational decision! And YES, I can repeat with confidence kwamba, so long as unaweza ku-cover variable costs, then you can continue with operations wakati unaendelea ku-adjust parameters of profit function!
WHY? Simple...
Let's say ume-shutdown! Ukifanya hivyo unakuwa umeokoa nini?! Fixed Costs zipo pale pale. Anyway, SAWA kwamba kwa sasa you don't incur variable costs... lakini hata wakati una-incur variable costs, hizi zilikuwa zinajilipa!
Kutokana na hilo, inaonesha wazi kwamba, at the point ambapo Jumla ya Mapato ni sawa na Jumla ya Variable Costs, whether you shutdown or not, net result ni ile ile!!!
Sasa kwanini nasema uamuzi wa busara ni kuendelea kuzalisha provided una-cover variable costs? By contradicton, ukizima unaweka rehani wateja wako!!! Kwa mfano, tuki-assume issue ya Dangote ni kweli; huyu bila shaka ana wateja wake kama vile Mawakala n.k! Possibly ana wateja ndani na nje ya nchi ambao wanasubiri mzigo kutoka kwake!
Sasa unapofunga wakati uwezo wa ku-supply kwa hawa watu unao; ina maana unawaambia "go somewhere else" na YES, watakwenda! So, it's far better kuendelea kuzalisha provided you can cover variable costs huku ukiendelea na biashara, kuliko kuzima kwa sababu, hata ukizima, nothing will change; sana sana unahatarisha your key customers!!!