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

To: Tenchusatsu who wrote (251980)	5/19/2008 12:59:04 PM
From: fastpathguru	Read Replies (2) \| Respond to of 275872

FPG, > No, elmer's quote referred to an "equally efficient competitor." I.e. Intel's cost structure, not AMD's. Then explain to me how Intel can price above their own marginal costs, but below that of an "equally efficient competitor" if that competitor has the same cost structure as Intel. In other words, tell me how the following inequality could ever be true: X > Y > X MarginalCost < AverageVariableCost < FixedPlusVariableCost < LongTermSustainableAveragePrice (LTSAP) The only way Intel could price their processors on average below their LTSAP against an "equally efficient competitor" is if they didn't expect to be competing against the EEC forever. (AMD is alleging Intel did far more than merely price their chips below LTSAP.) fpg