Unformatted text preview: cheap alternative either. Our unemployment insurance rates will increase, and some workers may find another job. Don’t forget those overhead costs that “keep on going” whether we are producing or not. We have been focusing on the production or “supply” side of the equation here. What about looking at another perspective, the consumption or “demand” side of the management decision. What could we do to increase consumption of our trucks? Lower the price? That is easy and cheap to do. Yes, this action MAY cut into our profit. We might be surprised to learn that profits MAY increase, but that is a discussion for later in the semester. We could offer a rebate (lower price), low interest financing (lower price), and/or dealer incentives (lower price) 44...
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- Fall '10
- Supply And Demand, Truck, Ford Motor Company, Pickup truck, Ford F-Series, current rate