A manufacturer of washing machines has expanded its plant and has created excess capacity, just as the general economy has taken a downturn. The company is likely to
a. raise prices on washing machines to offset lost sales.
b. be vulnerable to new entrants to an attractive market.
c. suffer from intense rivalry from international manufacturers.
d. offer rebates and incentives for customers who purchase washing machines.
Answer: offer rebates and incentives for customers who purchase washing machines.