🚀 go-pugleaf

In article <4690045@pollux.svale.hp.com> dlow@pollux.svale.hp.com (Danny Low)  
writes:
> >(Wilfred Wong) 
> >    Since no duties are currently being collected, the question
> >that should be answered is what's the cause of the current price
> >increase. Has the Korean manufacturers increased their prices or
> >are US distribution channels taking advantage of the situation
> >by increasing their prices?
> 
> There are two ways to price goods, purchase cost + margin or replacement
> cost + margin. When the two costs are the same the two methods are
> the same. When you know that there will be a price rise then
> replacement cost is the only way to go. Otherwise you may not
> make enough money to buy any replacement for the existing
> inventory you sell.
> 
> 			   Danny Low
>     "Question Authority and the Authorities will question You"
> 	   Valley of Hearts Delight, Silicon Valley
> 	     HP CPCD   dlow@pollux.svale.hp.com

	In a word: speculation. DRAM is a commodities market, and the supply  
just became more expensive (at least most of it). As the computer industry  
expands, the demand continues to increase. Let's just hope we don't get the  
same problem as with the Japanese in the mid/late 80s, where low pacific rim  
prices drove U.S. manufacturers out of business and then the courts took away  
the supply of chips from the pacific rim. We were left with no chips and no  
manufacturers (it took many years to get the supply back, let alone the prices  
down). Good ol' American trade relations continue...

--
Robert Seymour				rseymour@reed.edu
Departments of Physics and Philosophy
Artificial Life Project			Reed College
Reed Solar Energy Project (SolTrain)	Portland, OR