During a recession, which of the following ﬁrms are likely to be proﬁtable?
A) A manufacturer of expensive automobiles.
B) A luxury hotel.
C) A boutique offering high-end designer products.
D) A manufacturer of value lines for supermarkets.

Question

Quizplus · Accepted Answer

During a recession, consumers tend to cut back on luxury spending and opt for more affordable options. A manufacturer of value lines for supermarkets is likely to be profitable as consumers look for cost-effective products.

During a Recession, Which of the Following ﬁRms Are Likely