Suppose Ford,GM and Dodge Make the Majority of Pick-Up Trucks

question 98

Multiple Choice

Suppose Ford,GM and Dodge make the majority of pick-up trucks sold in the United States.If they all sell for approximately the same price,and Ford offers a $2000 rebate on new truck sales,what can Ford expect to see?

• A)An unprecedented increase in truck sales.
• B)An immediate response by GM and Dodge.
• C)A visit from the antitrust authorities of the government.
• D)A revolution from Ford stockholders.
• E)Announcements by GM and Dodge that plans are underway to produce a much cheaper pick-up truck in six years.

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Definitions:

Inventory

A company's merchandise or goods ready for sale, representing one of the key assets that businesses manage and report on their financial statements.

Municipal Bond

A debt security issued by a state, municipality, or county to finance its capital expenditures, often exempt from federal taxes and sometimes from state and local taxes.

Tax Bracket

The range of incomes taxed at a specified rate by the government, part of a progressive tax system where tax rates increase with income.

Corporate Bond

A debt security issued by a corporation to raise capital, obligating the issuer to pay interest and repay the principal at a specified date.