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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.


Definitions:

Calorie Intake

refers to the total amount of energy, measured in calories, that is consumed through eating and drinking.

Maternal Nutrition

The nutritional health of a mother during pregnancy, which is critical for the health and development of the fetus.

Obesity

A medical condition characterized by an excessive amount of body fat, which can increase the risk of health problems.

Diabetes

A chronic condition characterized by high levels of sugar in the blood, resulting from defects in insulin production, insulin action, or both.

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