Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 214.25

-3.1%

Jan 6 3:59 PM EST

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To: chipguy who wrote (247762)	2/13/2008 9:05:12 PM
From: gvatty	of 275872

Chipguy, discretionary buying doesn't exist in a true monopoly. Eventually, people have to replace their computer chips. What if Intel was a pure monopoly and there could be no competition and they 50 million of their chips in a warehouse. If they decided to fire all their employees and shut down all their factories for 2 years, gow much could they charge per chip? It's an extreme example, but so is price demand elasticity in a monopoly situation. The monopoly or cartel controls the price, and the supply. If you are a monopoly and reduce the supply long enough prices will rise and demand will increase. Isn't that what OPEC does. Hey, should OPEC continue its anti-competitive marketing practices. Does anyone here who owns Intel stock approve of OPEC's cartel practices?

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