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

To: Paul Engel who wrote (52109)	3/9/1999 2:20:00 PM
From: Kevin K. Spurway	Read Replies (2) \| Respond to of 1572154

Re: "AMD sure has you buffaloed !" It has nothing to do with AMD. Marginal cost is the cost of producing the next unit of production. In AMD's case, it would be the cost of producing the 5,000,000th chip this quarter. Since so much of the cost of producing chips is up front (fab, R&D, etc.) the marginal cost curve for your typical semi company with fab is a pretty steep downslope. That's why it's pretty unlikely that the FTC would ever be able to successfully prosecute Intel for predatory pricing. Kevin