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Very good summary argument, DoDo. I'm not sure that one could expect prices to change monthly, for i don't believe costs drop at that speed.

In fact, it would be more appropriate to see what margins are for the producers. Some of the price drops are due to technical/manufacturing progress, some to economies of scale, and some are simply strategic, expecting to capture market share.

These third kind of price drops may be actually dangerous for the industry, because it affects the financial headroom of the company, and increased market volatility. Neither of those conditions sends proper signals to the industry.

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin

by Crazy Horse on Mon Jan 16th, 2012 at 03:39:13 AM EST
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