A Company Should Generally Add a Product Line If

question 11

Multiple Choice

A company should generally add a product line if:

• A) Its segment margin is negative and its contribution to overall company profits is negative
• B) Its segment margin is negative and its contribution to overall company profits is positive
• C) Its segment margin is positive
• D) None of these are correct

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Definitions:

Nominal GDP

The gross domestic product measured in current prices, without adjusting for inflation.

Base Year

A specific year against which economic growth or other economic indexes are measured, serving as a point of comparison for future or past data.

Hypothetical Country

A theoretical or imaginary nation used for the sake of argument or analysis in economic models or discussions.

Real GDP

Real Gross Domestic Product measures a country's economic output adjusted for price changes, such as inflation or deflation, to reflect the true value of goods and services produced.