In 1984, British Prime Minister Margaret Thatcher decided to shut down so-called uneconomic coal mines owned by the government.The National Union of Mineworkers protested, asserting that there was enough coal in the mines to continue current levels of production for years.Thatcher implicitly argued that her decision was economically sound because, at any practical level of output, for each "uneconomic" mine,

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Margaret Thatcher's decision to shut down the so-called uneconomic coal mines implies that the marginal cost (MC) of extracting coal from these mines was greater than the marginal revenue (MR) generated from selling the coal. This situation makes continuing operations economically unsustainable, as each additional unit of coal extracted would result in a loss rather than a profit.

In 1984, British Prime Minister Margaret Thatcher Decided to Shut