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To: Skeeter Bug who wrote (95651)2/7/1999 12:24:00 AM
From: BGR  Read Replies (1) | Respond to of 176387
 
SB,

Still cannot distinguish between necessity and sufficiency? :-)

You actually got the point right around the third paragraph, when you said:

sometimes prices will be lowered in order to keep regulators, govt and public perception at bay. that is a reality.

So it is, after all, not just supply and demand? What a shock! Did they talk about anti-trust rules and the importance of public perceptions in the ECO 101? Or did they just talk about lassez fairre (sp.)?

Better technology helps keep that balance between profits and reality. Who would you consider to be a smarter company, MSFT or INTC? Do you realize that MD's public posturings about looking out for the consumer with lower prices is a great marketing instrument while MSFT gets the evil empire stamp even when they give out s/w for free?

I come from a country where in the 1940's an artificial famine occurred solely from monopolistic controls of supply. This year's Nobel prize was granted to the researcher who explained that phenomenon. Monopolies are rare this days. And marketting rules. You miss one very important point about price levels, that several other issues have influence on the companies than the equilibrium point of supply and demand, regulations and public perceptions being two very important ones. Technological advances enable companies to improve margins while reducing prices.

-Apratim.