Originally posted by JohnInIndy But if I see that my revenues are dropping I can cut prices to sell more product and make up for it in volume. Don't say it doesn't work because companies are doing it all the time. Even work with taxes back in the 80's
Sorry, this is apropos what? What would be the analogy to government spending/taxation?
Besides, what do you do, as a business, when you already break even? There is no more room to cut prices further or you're selling at a loss? You cut on production and sell only what you can while still breaking even (or a little above) and lay-off the idle workers (which is what the US companies are doing nowadays, more or less) or you "double down" and go into more debt to ride-out the storm.