Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 209.04

+0.7%

Dec 16 3:59 PM EST

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To: Paul Engel who wrote (46926)	7/10/2001 4:06:57 PM
From: Milan Shah	Read Replies (1) of 275872

What ? Albert assumed the fixed cost of TWO CPUS was the same as ONE CPU - $50 !!! Uh, yes. If you spend $50 to buy a manufacturing plant capable of producing two chips, then the *fixed* cost is $50, whether you make 0, 1, or 2 chips. That's what a fixed cost means - you have to pay exactly that cost no matter how many chips you produce. Milan

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