To: BGR who wrote (95657 ) 2/7/1999 1:13:00 AM From: Skeeter Bug Read Replies (1) | Respond to of 176387
ap, i understand necessity to be required in order to lower prices in the rational business world. not exactly sure what you mean. seems you don't argue my point (i'm right - i wouldn't argue either ;-) so you try and say i'm confused. NOT! ;-) i put that caveat very early in this conversation. you never mentioned it. you just stuck w/ tech advances... now you see the light and try to play "gotcha!?" NOT! ;-) >>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.<< i didn't miss that. i told you about them! whoa!! did you just beam in from somewhere? ;-) >>Technological advances enable companies to improve margins while reducing prices.<< notice even you didn't say... >>Technological advances enable companies to improve margins for the purpose of reducing prices.<< ...which is what you started arguing. seems you changed for the better, though. stated properly, technological advances help to enable a company to maintain or grow margins even when reducing prices due to supply and demand imbalances (threats of regulation must be considered in industries, as I (me, moi! ;-) pointed out). however, it is absolutely not a guarantee to do so. in addition, there is no guarantee that prices will drop and, in fact, they can, and sometimes do, increase while costs decline and technology advances. cost reductions do not, in and of themselves, cause price reducions. you finally got that one after 10 posts ;-) progress is being made. btw, perception matters in as much as they vote in, either directly or indirectly, the regulators. in effect, it is really one issue, not too. govt regulation. who cares what anybody other than the big stick bearer cares unless that perception impacts demand? whoa, guess where we keep going? wonder why? regulation is an issue in medicine as human life is involved. take the class. micro econ is MUCH different than macro econ. loved the former and was indifferent toward the latter.