Join the new world

Sorry to have made this news kinda late, but the RL work and dutch lessons and all these craps take a lot of time to perform 😛.

Some of you may have wondered why there were a sudden iron crisis on the market, while the problem was not for grain.

So, let's do a little economical lesson.







eRepublik Economical model

Before the recent update, the economy didn't worked well due to the overproduction and underconsumption of products. This of cours hasn't helped. To compare the real effect of the update (admins if you are reading it, this might help you to better understand why some people hire economically skilled persons) I'll compare two different company's, one of Q1 and one of Q5.

Classical module


The production cost of a Q1 consumable good used to be 2 standard units (SU) for the raw and 1 SU for thewage (scalled depending of the good). So, producing 1 unit of finished good cost 3 SU.

For a Q5 company, you had to consume 10 SU for the raw and 5 SU for the wages.

So, the Q5 companies were making more profit because there were less people on the market, but this was all because the production cost was the same even if the quality improved a little bit things, like the speed that u could eat food and all (but now the speed is useless as the eat button has been updated...).

Now look at the new module.

New module


A new Q1 company still produce 1 unit for 3SU. But a Q5 company produce 1 unit for 10 SU for the raw, but only 1 for the wages because the workers produce as much Q1 as Q5 when he works.

So the production cost for a Q5 company is now 11 SU
So the great companies are very strongly advantaged compared to the small ones. Moreover as people can produce a lot more, the daily amount of raw consumed has grown a lot.

Now you are wondering why there is not (yet) any problems with the grain, while there is a big problem with iron.


The difference between grain and iron


The difference is a little bit subtile and lay in the quality definition.

A Q5 food is the same than 5 times a Q1 food, excepted that u can eat it faster. But with the recent update, this is now useless and a Q5 food is the same than a Q1 food. So improving the company had just no sense and I think that this is the reason why they rose the productivity of Q5 company's has rose because else nobody would have updated them anymore.

But it is definitely not the same for weapons! A Q5 weapon strikes 5 times more and do twice the damage of a Q1. So the value of a Q5 weapon is 10 times the value of a Q1 weapon.

While they used to have the same production cost /fight (3 SU/ fight) and that the Q5 does more damage than the Q1, buying Q1 weapons was only allowed because the Q5 company sellers were selling guns at a high price and making a lot of profit. But there was no other reason.

Now that the production cost of Q5 weapons is even lower than the production cost of Q1 weapons, the Q5 company sellers will be easily allowed to lower their price so that it comes close from the Q1 company's price *5 and nobody (excepted people with no economical skills and the state) will ever buy Q1 weapons.

For the previous reasons, there are more iron high Q companies than food high Q companies. So this is the main reason why the iron was sold faster.

As it is obvious that the admins will have to cancel that update because it is just ruining the poor citizens that have only Q1 weapons and that our stocks (excepted for Zimmah 😁) were not very high, I think that everyone jumped on the iron as long as there were still some on the market.

Yours Faithfully,
Jofroi,
Minister of Finance


PS: If you don't like the way that I defined SU, screw you 😛.