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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (108856)	5/1/2000 2:27:00 PM
From: Jim McMannis	Respond to of 1576348

Joe, RE:"Scot (no pickin' on you Scot), A Microsoft study from November 1997 reveals that the company could have charged $49 for an upgrade to Windows 98 ? there is no reason to believe that the $49 price would have been unprofitable ? but the study identifies $89 as the revenue-maximizing price. Microsoft thus opted for the higher price. You (or actually judge Jackson) make it sound like MSFT is the first company in the world that tried to maximize revenue (more accurately profit) in deciding how to price a product. Maximizing profit is something normal, all companies do this." ---- Like you I'm flabbergasted by some of the comments here. I'm beginning to wonder whether some here understand the meaning of capitalism and how anti-capitalistic some of the posts sound. Some even border communistic. I don't know why some of these guys don't give all their money to the government and let the government take care of them. I'm posting to you because I don't want to offend anyone personally...but I thought everyone knew that it's a companies duty to maximize profit... What should bother THEM is that the head of their states department of revenue will tell you that's its duty is to extract the maximum amount of tax from the taxpayer...and that's a quote form the head of the FL department of revenue.... Jim

To: Joe NYC who wrote (108856)	5/1/2000 9:48:00 PM
From: Scot	Read Replies (1) \| Respond to of 1576348

A Microsoft study from November 1997 reveals that the company could have charged $49 for an upgrade to Windows 98 ? there is no reason to believe that the $49 price would have been unprofitable ? but the study identifies $89 as the revenue-maximizing price. Microsoft thus opted for the higher price. You (or actually judge Jackson) make it sound like MSFT is the first company in the world that tried to maximize revenue (more accurately profit) in deciding how to price a product. Maximizing profit is something normal, all companies do this. In a sentence, monopoly pricing is about charging MORE than competition would allow if the good were sold in a true market. Imagine if instead of being able to buy your AMD shares at the NYSE, you had to buy from one person who could charge more than the price the shares would bring in a market such as the exchange. That's the difference and the best I can explain it as a summary. Sorry..I'm too tired to elaborate and discuss demand curve and marginal pricing. Regards, -Scot