Quote:
Originally Posted by WWMIndy
Or they have reduced production, lowering their variable per unit costs, while fixed costs naturally decrease over time... FC + VC = TC
Furthermore, with lowered production and cost-cutting, quality should improve because in the short term, the only thing they can do is fire people to increase the marginal product of labor.
In the medium term, they will be able to lower wages while still commanding higher output per worker, directly lowering the capital inputs necessary create the end product... (this means lower price)
Doesn't look, feel or drive any cheaper than my 07 e-350...
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Definitely doesn't drive cheaper, and looks are of course subjective (I can say something looks cheap because it resembles a car at a lower price point, and you can say the opposite, for example), but I can point out a few small details here and there that are of cheaper material than the W211.
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-2006 M-B E350 AMG Sport:
Pewter/Black, AMG Sport Package, Premium & Entertainment Packages, DD Seats w/ Massage, Etc., Rear Sun Shades, Smoked Rear Lights, Blacked Out Side Markers, 5% Tints
-2009 Chevy Malibu: Silver/Gray
-SOLD: 2002 M-B S500:
Brilliant Silver/Black, Fully Loaded w/ Every Option (ABC/Disctronic/Parktronic/Heat & Cool Seats/Rear-Seat Adjust, Etc.)
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