If by Dropping a Product a Firm Can Avoid More

question 148

True/False

If by dropping a product a firm can avoid more in fixed costs than it loses in contribution margin,then the firm is better off economically if the product is dropped.

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Definitions:

Indeterminate Growth

Unrestricted growth, as for example, in stems and roots. Compare with determinate growth.

Leaves

The flattened structures in plants and trees that are typically green and function primarily for photosynthesis, capturing light energy to convert carbon dioxide and water into sugars.

Flowers

The reproductive structures of angiosperms (flowering plants), consisting of specialized tissues for the production of seeds and fruit.

Arabidopsis

A small flowering plant used extensively in the study of genetics, molecular biology, and plant sciences due to its relatively simple genome and short life cycle.