Path: utzoo!utgpu!water!watmath!clyde!att!osu-cis!killer!elg
From: elg@killer.DALLAS.TX.US (Eric Green)
Newsgroups: comp.sys.amiga
Subject: Re: Next Amiga system
Message-ID: <5808@killer.DALLAS.TX.US>
Date: 14 Oct 88 04:31:57 GMT
References: <229@dsacg2.UUCP>
Organization: The Unix(R) Connection, Dallas, Texas
Lines: 29

in article <229@dsacg2.UUCP>, nor1675@dsacg2.UUCP (Michael Figg) says:
> In article <3320@tekig5.PEN.TEK.COM>, wayneck@tekig5.PEN.TEK.COM (Wayne Knapp) writes:
>> P.S. The reason why 8-bit DACs are getting cheap is because there is a large
>> demand for then.  Haven't you guys wondered why there are so many 8-bit triple
>> DACs out there? 
> 
> Does this explain why 256k chips are still so cheap? :-)  I always thought
> that large demand caused prices to go up. 

In the short term, large demand causes prices to go up. In the long
term, large demand causes prices to go down, because supply rises to
meet demand and economies of scale can be brought into play. So
sometime late next year, expect to pick up 256K chips for 50 cents
;-). (hint: It won't happen. They'll decrease the supply of the 256k
as demand goes down, and put that into more-profitable 1-M chips).

If there is a total market for 50 widgets, a widget will logically
cost more than if there was a total market for 5,000,000 widgets,
right??? Amongst other things, that's why a Cray 2 costs more than an
IBM clone..... despite that Intel probably spent as much money on the
80286/80287 as Cray's team did for the Cray 2.

[All courtesy of vague memories of Economics 300 :-).]

--
Eric Lee Green    ..!{ames,decwrl,mit-eddie,osu-cis}!killer!elg
          Snail Mail P.O. Box 92191 Lafayette, LA 70509              
It's understandable that Mike Dukakis thinks he can walk on water.
He's used to walking on Boston harbor.