Path: utzoo!mnetor!uunet!husc6!bloom-beacon!gatech!mcnc!ece-csc!ncrcae!ncr-sd!crash!pnet01!sreeb
From: sreeb@pnet01.cts.com (Ed Beers)
Newsgroups: comp.sys.atari.st
Subject: Re: RAM chips
Message-ID: <2694@crash.cts.com>
Date: 17 Mar 88 04:36:09 GMT
Sender: news@crash.cts.com
Organization: People-Net [pnet01], El Cajon CA
Lines: 25

"Dumping" is an accounting point of view.  The memory chip business is VERY
capital intensive but, once yields are under control, the incremental price of
producing chips is very low.  So the cost looks something like this:

        Price of factory distributed over chips made    2.00
        Labor, materials, power, etc                    1.00
        Marketing, distributers, etc                     .50
                                                        ____
                                                        3.50

So, according to our government, if you sell them for 2.50 you are selling
them below your "cost" and therefore dumping.  From the vendors point of view,
he has already bought the factory so his cost ( in the short term market point
of view ) is 1.50 so he makes 1.00 on each one he sells.

It wasn't a plot to put the US companies out of business, we and they just
built too many factorys and the equilibrium between marginal cost and demand
ended up below the level everyone needed to make a long term profit.

The numbers are just off the top of my head but I have lots of faith in the
reasoning.

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