Companies that rely on retailers to sell their products may have to pay a subsidy for retailers to carry a product that is unlikely to sell well due to its high price.
A prestigious kitchen appliance company specializes in European-style custom ovens. Its product line started with smaller high-end ovens with their signature styling and now includes large ovens that can price over $150,000 and are available in a wide variety of colors and finishing features. How might the decision to carry large, highly customizable and expensive ovens impact the company?
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