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Gap announced that it will close 175 (nearly 26 percent) of its North American s
Gap announced that it will close 175 (nearly 26 percent) of its North American stores. It will terminate an unknown number of workers and cut 250 headquarters jobs. Thinking of a Gap store as a unit of capital, explain why Gap is reducing the number of stores and workers. Is Gap making a long-run decision or a short-run decision? Is Gap taking advantage of economies of scale?
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