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Article #41704

Re: Canadian ISP Makes Really Bad Decision

#41704
From: Richard
Date: Tue, 28 May 2002 18:49
35 lines
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"LaSallePCTech" <info@accessmontreal.com> wrote in message
news:Pc5I8.84$Sn2.37397@news20.bellglobal.com...
> Build another FAT-ONE.
> If McDonalds sold 1,000,000 Hamburgers in a year, at
> just one location - but the demand was for 2,000,000 ..
> Do you think McDonald's should just double the price
> to profit - and keep up with customer demand. NO!
>
> They open up a second restaurant - keep the Burgers
> at the same price, and recoop the loss of the 2nd restaurant over time.

Despite the fact that we're arguing for the same side here, I'm just curious
here, when did you drop out of school? Was it the 3rd grade or the 4th?

Let's say I decide to get HSE this September. I'll download 1 GB the first
month. It'll cost me $44.95+tax. Then in October I'll download 3 GB, it'll
still cost me $44.95+tax.

Still with me?

If I go to McD's and order a hamburger it'll cost me.. well, I dunno, I
haven't been stupid enough to do that in maybe 5 or 10 years, but let's juts
say it'll cost me 4$. Now lets say the next day I still haven't gotten over
my bout of temporary insanity and go back to order two hamburgers. They
charge me 8$.

See? Bell charged me the same money when I tripled my consumption.
McDonald's charged me twice as much for twice the product.

McDonald's can increase the supply more easily because they're getting paid
in a way that's directly proportional to what's being used. And guess what,
if when they reach a point where increasing supply decreases profits
regardless of demand, they _will_ start charging more. Basic economics...

Richard
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From: "Richard" <this@is.invalid>
Newsgroups: can.general,mtl.general,ont.general,ns.general,chi.general
Subject: Re: Canadian ISP Makes Really Bad Decision
Date: Tue, 28 May 2002 14:49:13 -0400
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