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

To: TimF who wrote (374513)	3/18/2008 7:17:16 PM
From: Road Walker	Read Replies (1) \| Respond to of 1573866

Trade between seller and buyer isn't "me vs. you". Their is competition between sellers for the consumer, and competition between buyers as well, but the actual trade is between a willing buyer and a willing seller, and isn't remotely similar to war or conflict. Man what kind of business are you in? There is pretty much a set dollar margin between raw materials and finished, packaged goods. Everywhere along the line, from the commodity seller to the manufacturer to the packager to the shipper to the distributor to he retailer there is a struggle to increase their percent of that finite figure that the end user pays. I cut my teeth on this crap... spent 35 years doing this stuff. Don't tell me it's not "conflict". You want to know pressure, walk into a negotiation and know that 60 people you work with will lose their jobs if you blow it. It ain't beanbag. If they are pumping to capacity, the effect of the cartel on price is next to zero at this time. They can only push to increase the price by lowering the amount of oil they sell to the market. So when the cartel pumping to capacity, they aren't ripping anyone off. Typo: supposed to say "not" pumping to capacity. So the OPEC percentage share was 42%. OK we can go with that. Quite "a fraction". 42% for some commodities doesn't give you much control over the price. With the short run inelasticity of oil, it can allow you to effect the price, but only by reducing sales. "Short run inelasticity of oil"??? A second ago you said OPEC couldn't pump any more! Yeah, they reduce sales by... wait a minute, sales are up! And prices are up about 100% in a year! Jeez Tim, what's wrong with your model?