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haroldo

join:2004-01-16
united state
kudos:1

1 edit
reply to skeechan

Re: [iPhone] Do you think the iPhone is a good "value"

said by skeechan:

.... Amazon prices it for profit maximization (where marginal cost equals marginal revenue)...

Not sure where you got your info, but they don't make any money on the Fire, they are pushing it to drive content and build their customer base. They know that once you have the Fire, you'll buy ebooks, music, etc. from them...it's almost a loss leader, but it's anything but a profit maximizer.
The newer version ekes out the smallest of profit margins »www.usatoday.com/story/tech/2012···1684863/
Marginal cost equals marginal revenue??? (Not sure what your getting at) That doesn't lead to maximization of anything.