MarcusMaximus
Active Member
You also refused to answer the question.
Also economics 101:
Company T can produce 100 widgets per time period
At price A, Company T has demand for 200 widgets per time period
Company T chooses to lower price of widget
Company T is also struggling to cut costs.
I doubt you and Kruggerand are missing the point I'm making. You're simply refusing to address it.
If demand at price A is greater than production ability AND the company is losing money per quarter then it is illogical to lower the price.
That’s only true if company T is lowering all prices of all variants of said widget. If they, instead, say, lower the price of one widget and raise the price of another, then it could be about shifting demand towards the former and away from the latter. Which could be, for example, because that gives a more optimal production mix and optimizes their costs to produce all widgets as a whole.