n the current recession, many firms are dropping product lines in an attempt to reduce losses.
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In the current recession, many firms are dropping product lines in an attempt to reduce losses. What are some of the factors managers should consider before making this decision? Is it possible that dropping a money losing product may backfire on a firm?
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This solution helps with a problem about production during recessions.
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The most important factor is profitability. If a product line is simply not profitable, it will be a drain on the resources of a company, preventing it from investing in more profitable efforts. But that should not be the only factor to consider before dropping such a money-losing product line. ...
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