Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 231.27

+2.7%

12:56 PM EST

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To: Steve Rolfe who wrote (17562)	3/12/1998 1:10:00 AM
From: akidron	Read Replies (1) of 70976

actually steve you've brought up perhaps the greatest myth of all... that incremental reductions in revenure will generate proportionate declines in profits... this is unerringly wrong... as revinues increase, so does the productivity of capital as fixed costs are spread over more and more units... and of course the inverse is true... this is why the essence of capitalism is and always has been so closely tied to the economies of scale... and the chip arena is about as good a example as you will find....

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