One In the News feature reports that General Motors planned to essentially quit making cars and trucks in the United States for nine weeks from mid-May through July 2009 and Omaha Power planned to close one of its nuclear plants permanently.Based on these particular news clips,what is the difference between GM's and Omaha Power's decisions?
A)Omaha Power was trying to get rid of excess inventory,and GM was trying to become more efficient.
B)GM was trying to maximize profits while Omaha Power was trying to minimize losses.
C)GM's decision to idle plants was a short-run shutdown decision.Omaha Power,by contrast,made a long-run decision to exit a specific market.
D)There is no difference between GM's and Omaha Power's decisions;both were trying to get rid of excess inventory.

Question

Quizplus · Accepted Answer

The news clip states that GM's decision was a short-term shutdown, while Omaha Power's decision was to permanently close a nuclear plant, indicating a long-term, market-exit decision. Therefore, option C is the correct choice. A is incorrect because it mentions excess inventory, which is not explicitly mentioned in either news clip. B is incorrect because there is no mention of profit-maximization or loss-minimization motives in either news report. D is also incorrect because there is no mention of either company trying to get rid of excess inventory.

One in the News Feature Reports That General Motors Planned