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:

Developed Countries

Nations with advanced economic systems, high levels of income per capita, and generally high standards of living.

Worker Health

Refers to the physical and mental well-being of employees in their workplace, significantly impacting productivity and satisfaction.

Efficiency Wages

Wages that are deliberately set above the market equilibrium to increase productivity, reduce turnover, or improve the quality of applicants.

Labor Surplus

A situation in the labor market where the supply of labor exceeds the demand for labor, often leading to unemployment.