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To: Ernest_at_the_Beach

What will this do for Moore’s Law?


6 posted on 10/12/2009 10:09:55 AM PDT by BlueStateBlues (Blue State business, Red State heart. . . . .Palin 2012----can't come soon enough!)
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To: BlueStateBlues
blockquote>
What will this do for Moore’s Law?
IMHO Moore's Law actually relates to the elasticity of demand for computer circuitry. That is, Moore's Law holds not because circuitry naturally keeps getting cheaper but because there is so much demand for cheap circuitry that you can make money by doubling and redoubling the capacity of a computer chip.

The cost of production of anything drops by about 25% when you produce more of that thing than has previously been produced in previous history. There is so much elasticity of demand that if you spend the R&D money to enable you to cut the price by the 25%, you will sell double the number of transistors and recoup your R&D bucks profitably (and if you don't do the R&D, someone else will - and you will be out of the chip business).


7 posted on 10/12/2009 11:28:35 AM PDT by conservatism_IS_compassion (SPENDING without representation is tyranny. To represent us you have to READ THE BILLS.)
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