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Technology Stocks : Micron Only Forum
MU 242.59-6.1%2:48 PM EST
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To: Carl R. who wrote (47168)7/15/1999 12:16:00 PM
From: Skeeter Bug   of 53903
 
carl, marginal cost is typically the decision maker and it is the same as the variable cost of producing the next component. however, companies will produce below variable cost due to a fear they will slide down the learning (cost) curve.

that is why you see inventory levels go up to 80 million units, as is the case with mu. they produce below variable, but don't want to sell below variable. this works until they need cash or technology takes a turn.

then, la deluge. they just try and get what they can for the product.
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