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

To: The Duke of URL© who wrote (138211)	10/30/2004 12:03:30 AM
From: Dan3	Respond to of 275872

Re: 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. No, if they don't cover their fixed costs, it's a loss. What's up with you? You're often pointlessly nasty, but usually at least vaguely clever about it. I hope you didn't short AMD while going long Intel.... Ouch!!