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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Alohal who wrote (143244)9/29/1999 11:44:00 PM
From: Skeeter Bug  Read Replies (1) | Respond to of 176387
 
alohal, competition is the result of supply and demand. you make my point. thanks. i don't think you know it yet... -ng-

if dell doesn't lower their price then they CAN'T sell all the boxes they can make. why? the price is too high. in order to sell all the boxes they make, they LOWER prices. why? to stimulate MORE demand so they can sell all those boxes that they make.

if they make x boxes and can sell all of them at $1500, they would be blundering, inept, idiot business folks to lower the price to $1000 just for the heck of it (this is edamo's "arguement").

as for passing on cost reductions, that is a fallacy. why? has the production cost of dram dropped in the last two months? yup. spot prices are up over 400%. that isn't passing on cost savings. simple minded folks might do this (wonder why 4 out of 5 businesses fail? i don't).

why would a company charge more for a part they make cheaper? supply and demand, doh!

it is truly basic.

i apologize for my intrusion into the remedial economic thread.