Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (33325)	7/3/2004 10:14:12 PM
From: profile_14	Read Replies (1) \| Respond to of 206114

This is a fairly bold and rude statement from someone who does not know me, Elroy. What you mean to say is that as long as they have a positive contribution margin, the correct term, they can defer to cover fixed costs temporarily and should theoretically continue to run the business. The example I gave was an extreme one that is often cited in business school. I attended a top five business school and I do not appreciate this veiled insult. Whether or not hotels are revenue maximizers does not matter. The point I am making is that economical cars or SUVs have different cost and overhead structures, and you can play games all day.

To: Elroy Jetson who wrote (33325)	7/6/2004 12:16:12 AM
From: Webster Groves	Read Replies (1) \| Respond to of 206114

<While the marginal cost of serving the guest provides a minimum price the hotel will accept, no other cost or occupancy data is relevant.> Your statement implies that these various factors are independent, which they certainly are not. How does the marginal cost vary for a business designed for 100 customers when suddenly it has only 1 ? Or look at Yukos. How does the marginal cost vary when a $3B tax bill suddenly comes in the morning mail ? wg