Who decides whether particular products should continue to be produced and offered for sale?

Question

Please answer in Economics!

Answer 1

Market Research! yey!

Answer 2

lets take the whole economy... if the country has free market economic system then it would be the firms that are producing those goods, they will have the power to decide whether to continue production or cease...

however if it were planned or command economy then the decision will be taken the government as they will be in charge of production in the whole economy...

lastly if it were a mixed economy then the final decision would take into consideration the phenomenon of market failure which exists when externalities arise... if a good is giving off negative externalities then it would be beneficial to stop its production, the government can do so by charging taxes over the goods or passing legislations... although if positive externalities were being given off then the firm would be encouraged to continue production by granting subsidies.

Answer 3

Each particular product is made by a firm, so the firm decides whether to continue or stop producing it, based on the demand for the product and the costs of making it.  Retailers can decide whether they sell it in their stores (and in some cases, such as Wal Mart with explicit music, do refuse).  Very rarely does the government step in and stop a product from being sold.

Answer 4

Most firms do research into the costs associated and the revenue that a particular product will have. Through market analysis, study groups, maybe a small scale introduction to test the waters, and other factors contribute to the decision. It all is factored together in a cost benefit analysis that gives and estimated bottom line. Often times when it comes out to be a net profit and that is examined against potential risks, the board and upper management decide whether it is worth the companies resources to invest in the product line. If it is a new product there is more difficulty in weighing the risks. If the product is already for sale, it makes it easier to measure costs and risks.

It ultimately comes down to who controls the money. They make the decision on whether a product gets funding or not.