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Which of the following is MOST LIKELY to be TRUE ? (Read answer choices carefully.) Answers: a. A firm has multiple product lines that are

Which of the following is MOST LIKELY to be TRUE ?

(Read answer choices carefully.)

Answers: a.

A firm has multiple product lines that are highly interdependent, and one of these product lines has higher costs than revenues. That product line should be dropped.

b.

A firm has a single product line. Interdependency is likely to play a role in the keep-or-drop decision.

c.

A firm has multiple product lines that are not interdependent and have no unavoidable costs. One of these product lines has higher costs than revenues. That product line should be dropped.

d.

A firm has multiple product lines and most of the costs of these product lines are unavoidable if the lines are dropped. One product line has higher costs than revenues. That product line should be dropped.

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