Due to falling sales and increased competition from online retailers like Wayfair, Pier 1 Imports announced it would be closing up to 450 stores in 2020, representing almost half of its 942 locations. Pier 1's sales fell by 13 percent in the fourth quarter of 2019, and the company reported a net loss of $59 million for the quarter.
Source: "Pier 1 Imports Closing Nearly Half of Stores as Sales Falter," Associated Press, January 6. 2020
-Refer to the Article Summary. Use a graph to illustrate average total cost curves for Pier 1 before and after closing the 450 stores. Assume that after closing the stores, Pier 1 will be producing at minimum average total cost.

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The Answer of Due to falling sales and increased competition from online retailers like Wayfair, Pier 1 Imports announced it would be closing up to 450 stores in 2020, representing almost half of its 942 locations. Pier 1's sales fell by 13 percent in the fourth quarter of 2019, and the company reported a net loss of $59 million for the quarter.
Source: "Pier 1 Imports Closing Nearly Half of Stores as Sales Falter," Associated Press, January 6. 2020
-Refer to the Article Summary. Use a graph to illustrate average total cost curves for Pier 1 before and after closing the 450 stores. Assume that after closing the stores, Pier 1 will be producing at minimum average total cost.

Due to Falling Sales and Increased Competition from Online Retailers