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Politics : Formerly About Advanced Micro Devices
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To: i-node who wrote (228501)4/9/2005 7:52:25 PM
From: neolib  Read Replies (1) of 1578494
 
Suppose one's business consists of buying a raw material, processing it, then selling the result for 2x the cost of the raw material.

Now suppose the cost of the raw material doubles. Your production costs stay essentially constant, but your new sales price is also doubled. For the same quantity of product, you are now making almost double the money, but your profit margin remains essentially constant. As long as end consumption does not decline, this is an excellent business to be in, collusion or not.
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