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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: I_Banker who wrote (138207)	10/29/2004 9:53:53 PM
From: Robohogs	Respond to of 275872

Purple.

To: I_Banker who wrote (138207)	10/29/2004 10:46:14 PM
From: The Duke of URL©	Read Replies (2) \| Respond to of 275872

I know you pride yourself on your ability to be analytical, but you and Dan3 don't really understand how fixed and variable costs work, or maybe you just refuse to understand, just to win the argument. You do remember the issue don't you? It was generally how Intel would fair in a price war with AMD. Look at it from this angle. Fixed costs are just that, FIXED. So it don't friggin' matter whether a Dothan costs 10 dollars or twenty or even thirty. If they cost 30 and that number (as a variable cost) is less than AMD's cost, then they can put AMD out of business, if they choose. You see, the fixed cost is fixed, so if Intel makes a dollar on each chip then that is one dollar more toward the FIXED costs. That is considered a profit to intel ON THE SALE. All Elmer has to say to win his argument is that AMD's 200 wafer plant or their rented plant, has a higher variable cost than Intel's 4 Brand new 300 wafer plants. Nes Friggin" Paw? Sometimes a sharp rude insulting post like yours is not sufficient to actually make good reasoning.