[Economy] The value of... a Weapons factory

Day 2,466, 13:36 Published in Australia United Kingdom by Jny123

G'day mates, its time for the second part of my economic advice. his time i shall be looking at weapons factories and whether they are worth buying.



"For the purpose of this article i shall use base production levels and will not include Work Tax. All prices based on eAustralian prices"

Its is fact that for a product to be worth making it has to be more valuable than the raw material used to make it. If not then it is not worth making for anyone who wants to sell the end product. The same logic applies on erepublik with factories and raw materials. The following picture applies to Weapons, with the numbers beneath each level being the amount of raw material needed to produce 10 products in that factory which is the base level of production.



As you can see with each level increase the WRM(weapon raw material) needed increases by 100, except Q7 where it costs 1400 more than Q6. Now WRM is 0.03cc to buy or sell so if we multiply the amount of WRM needed by the cost we arrive at the following figures:
Q1 WRM Cost- 3cc
Q2 WRM Cost- 6cc
Q3 WRM Cost- 9cc
Q4 WRM Cost- 12cc
Q5 WRM Cost- 15cc
Q6 WRM Cost- 18cc
Q7 WRM Cost- 60cc

You may look at that and think "ok, where are you going with this?" Well here is the thing this next set of figures shows how much each factory makes when you time the value of the product by 10. (REV= Revenue)
Q1 WEP REV- 0.8cc
Q2 WEP REV- 1.6cc
Q3 WEP REV- 2.9cc
Q4 WEP REV- 7.4cc
Q5 WEP REV- 13.4cc
Q6 WEP REV- 30cc
Q7 WEP REV- 77.4cc

So appears the hidden error of production. Now anyone who buys their WRM will, hopefully, already have spotted this but for those who make their own WRM it may not have jumped out that until you start producing Q6 weapons you are making a loss on income. I say loss on income as you are not technically making a loss but more losing out on a greater income. "Money down the drain" springs to mind.



Therefore unless you can afford the leap to a Q6 Factory don't make weapons because you are not getting the same amount of money out of them as you would the raw material. So don't spend the 10 gold you have earned with 30 days working(hardworker) and Training(Super Soldier) on a new factory, buy an aluminium mine instead, it will produce you a healthy little amount of money that amounts to 3.75cc per day, on base production and sold at 0.03cc. That figure is 46 times more than a Q1 weapons factory will make you.

Of course there is another point to be made here, is it worth buying a weapons factory at all? A Q weapons factory amounts to the cost of 780 gold, without discount. Would it not be better using 780 gold to buy 78 aluminium mines? The answer, yes it is because that factory will still only give you 30cc per day while 78 aluminium mines will produce you 292.5cc per day. What about Q7- 1230 gold and makes 77.4cc, 123 aluminium mines= 461.25cc per day.

Now i'm not saying we all stop producing weapons and we just buy aluminium mines because if we did then WRM prices would drop and weapons go up due to supply and demand but it is something for you to think about when you next have 10gold and you want to invest it in something that will make a good return.

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