When a company makes bad products, it raises the cost of all products. Seeing a piece of trash on a shelf or in a commercial is a strain on our economy and on the companies who must offer these products and try to sell them to recoup their expenses. Furthermore, they must raise the prices of the products that they sell successfully to make up for the losses in bad products.
A single poorly designed car could cost a car company hundreds of millions of dollars, even if they only make a few hundred thousand models. that cost would be shared among all bottom lines, and in the market-wide competition/market price allowed for other companies.
Tuesday, October 16, 2007
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