Question

what would you do if your business fell victim to the global pandemic of covid-19 and was unwillingly shutdown? In what ways would you aim to recover and getback on track? Use microeconomic concepts to support your answer. Note, ideas need to be of reason. (but, out of the ordinary is not frowned on.)

Answer 1

If my business fell victim to the global pandemic of civid-19 and was unwillingly shutdown, I can do many things or anything to recover and get back on track.

But what can be done, depends on the type of business. As shutdown is due to pendamic so there may not be any loss to the fixed capital and it may be the production or distribution process which must have been affected due to low demand and or lockdown.

So after the pendamic ends, since I have my fixed capital so I will start production and sell of goods, but I have to look at some points which are:

• Since there is economic loss during pendamic times so there will be change in demand pattern so I have to understand it first and than produce according to it.
• Since all the firms will open after lockdown so they all will try to recover their loss, so I have to consider that also.
• The supply of Capital or fund may be affected so I have to look for some alternate sources.
• Since the markets will open up after long time so demand will increase and hence price will rise at first, so it will be gainful to recover and resume the work as soon as possible.

These are the simple things which can be done to recover and get back on track. One of the most important thing is that it will be almost like setting up a new business and hence we have to work hard.