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

To: Sarmad Y. Hermiz who wrote (252102)	5/20/2008 8:40:45 AM
From: pgerassi	Read Replies (2) \| Respond to of 275872

Dear Sarmad: Ask and you shall receive: wilmerhale.com Found on the very first result of a Google search on "antitrust marginal cost variable". Just goes to show how little research must have been done before making such expansive statements. Pete

To: Sarmad Y. Hermiz who wrote (252102)	5/20/2008 9:33:52 AM
From: fastpathguru	Read Replies (1) \| Respond to of 275872

>> AMD is pointing out that in an industry with high fixed costs and low marginal costs, marginal cost pricing is tantamount to selling at a loss, and is profitable only if the firm can price discriminate (sell some product at higher prices) which is the hallmark of monopoly pricing, and which is at the heart of AMDs case against Intel. << Can you point to even one instance where a US court has accepted this method for declaring a price to be "below cost"? SYH, I thought we had already been over this... When the "price below cost" test is against Average Variable Cost, then pricing at Marginal Cost will trigger the alarm because MC < AVC. You even did the research and said it yourself! Message 24600905 Can we just chalk this imprecise, layman's use of the word "cost" up to mere absentmindedness (it's a bit harder to swallow when Intel's lawyers do it in their court briefs), and move on? fpg