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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 221.05+1.4%3:59 PM EST

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To: hmaly who wrote (60921)10/29/2001 4:12:44 PM
From: Gopher BrokeRead Replies (1) of 275872
 
Almost every corp. tries to run at 80% capacity. More than that leaves you vulnerable to shortages, such as Intel had last yr.; and less can eat into profits.

Perhaps I wasn't clear. By maximising profits I mean controlling production so as to maximise sales_volume*selling_price.

Having a good product and advertising it well is what defines the demand and the production volumes are adjusted to meet that demand while maintaining a price that maximises profits.

I would be interested to hear from an Intel advocate who argues that Intel could not have made more money last quarter by constraining supply so as to increase their ASPs.
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