Shut-Down Price

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Shut-Down Price

The price of a product below which it is cheaper for a company not to make the product than to continue to sell it. That is, the shut-down price is the price at which the company will begin to lose money for making the product.
References in periodicals archive ?
The dispatch cost contains the fuel cost, start-up and shut-down cost, and spinning reserve cost of generators.
In addition, the start-up cost and shut-down cost of generator i in the objective function (1) can be linearized to [c.sub.su,i][s.sub.it] and [c.sub.sd,i] [d.sub.it], respectively
Table 3 compares different costs (fuel cost, startup and shut-down cost, spinning reserve cost, penalty cost of wind power spillage, and total cost) between the proposed model and the conventional robust UC model.
Some say the shut-down cost $40-$60 million in direct and ancillary lost revenues including the loss of an additional 250-plus workers who sold gasoline, clothing, autos, food and a variety of other services and goods to those former workers.
Instead, you'll wait to shut down until the market price per barrel falls enough below the $20 boundary that the probability of quick recovery is low and therefore the present value of expected losses equals the shut-down cost of $5 million.
He added the shut-down cost a total of pounds 600,000, half of which had to be met by council taxpayers in north London.
Still, when a facility is designated as a must-run unit, the owner of the power facility could called for extra compensation to retrieve additional prices it will obtain for running at maximum capacity and these price may cover the cost of fuel; variable operating and maintenance costs; and start-up and shut-down costs.
These additional costs may include the cost of fuel; variable operating and maintenance costs; and start-up and shut-down costs.
The Eaglescliffe plant shut-down costs included more than pounds 16m on site remediation, pounds 5m for staff costs and pounds 4.5m on reversing contracts that were taken out in 2008.
SBT is implemented in 20 sites in India and some of the benefits include no start-up or shut-down costs, silent operation and the chemical free process.
The shut-down costs the country about $2.5 million a day in lost revenue.