2. GM stock plunges as products slip behind BY JAMIE BUTTERS FREE PRESS BUSINESS WRITER http://www.freep.com/money/autonews/gm17e_20050317.htm

3. Lose money! General Motors Corp.'s latest efforts to fix its crucial North American car and truck business have been pummeled again by competitors with hotter brands. That's why the automaker announced Wednesday that it expects to lose money in the first quarter -- and the reason its stock fell to its lowest level in more than eight years.

4. Aging Models GM sells more high-profit pickups and SUVs in the United States than any other automaker. But its models are aging; they face more competition, and more Americans are shifting to cars, wagons and crossover vehicles, now that they face higher gas prices and have more good vehicles to choose from. GM is making a lot of those ever-improving cars, but its new offerings just aren't selling at the volumes or the prices that GM had hoped for and built its business plan around.

5. Market Share Falls With GM's U.S. market share falling to 25.1% through the first two months of the year, the world's largest automaker has cut its financial outlook, and investors see its future in the bleakest terms in almost a decade. Its stock price -- which represents how profitable investors think it will be in the future -- fell today by a shocking $4.71, or 13.6%, to $29.01.

6. Profit The Economics Monopolist sets MR equal to MC. It then compares price to Average Cost (AC). If P > AC  Profit! Price Quantity Q* P* D MC AC MR

7. Profit Loss If Demand Falls! Monopolist still sets MR equal to MC. It then compares price to Average Cost (AC). If P < AC  Loss! Price Quantity Q* P* D new MC AC MR new P** Q** D