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It's a failed economic module that's been in steady decline since they introduced working managers, is what it is. The Q6 and Q7 inflations only kept things going a bit longer, but I think this kind of crash is eventual.

I've totally given up the idea of saving my money to upgrade to a Q7 weapon factory. I'm not sure all that scrimping and saving will pay off in an economic module this backwards. Instead, I'm investing in RM, selling it, and buying Gold to invest in strength training and facility upgrades.

If a game defies the common sense laws of economics, can we really even call it an economy module?

I think you failed to account for the VAT tax, which would essentially eliminate all profit from tank production. Interesting that your article correctly cites the retail price, 3 hours ago, as being 9.51 dollars. Three hours later, lowest price is 9.00 dollars. Q7 tank factories are, essentially, a means to concentrate large amounts of raw: a tank is really no more than a storage mechanism. Enormous amounts of raw are produced at zero cost, suppliers are price takers and there is no useful function for the glut of product. One would expect price to plummet because of the absence of scarcity and of utility. The BoT was the real customer and he has gone home.

Yes, true, 20% percent tax is not included. It takes 0,6 on every Q6 tank, dropping income by ~7.6 CAD, making balance about 2 CAD

Prices are dynamic, that's true. Now it's 9,51 CAD again I don't want to treat all of my articles as a proof of sth, it's rather a curosity analysis. The fact is I don't have experience in production, recently I gave up my own weapon production.

There is also a funny situation with food. Maybe Q6, Q7 food would be profitable if only someone was keen to buy it. Time to change economic system?

So let's say we get back the weapon production bonus we lost in Quebec.
A Q7 worker would produce 14 Q7.
The cost for RM would be 112 CAD
The income would be 133 CAD before the 20% VAT
After VAT it is a 'profit' of 106 CAD
That's a loss of 6 CAD per working-manager workclick

If you paid an employee to make it (current wages 11.5 CAD), then you'd lose 17.5 CAD for each batch of 14 tanks you produce.

Compare that to just selling the WRM for 112 CAD @ 0.04 CAD/WRM

Maybe my numbers are somehow wrong (that might explain things)...but this makes no sense otherwise.

olivermellors nailed it

I use Q7 tanks only as a vehicle to move my vast amounts of WRM I produce

no money in the actual tanks themselves

@plugson

Your numbers are good. Unfortunately. Production is useless atm

Thank you

the profits are a joke
in russia i pay like 1cc more on market to buy a q7-tank than i would have to invest to build it myself. but to be able to build q7-weapons i would need to build a q7-company which is a bit too expensive with >1000gold
and because of the crazy high demand for raw to build q7 the profits will never be "high" like in the past with q5 and q6

+
i think the bot is online

2 obvious things point to that:


1.
last time the WRM dropped it was not 0.01cc like always but from one day to the next without any special happening it dropped from 0.06 to 0.04cc

2.
FRM is at 0.03 - why?
before the airstrike was introduced it was at 0.01cc. and even with 0.01cc you produce money from nothing so nobody would stop producing just because of the low price. now airstrike is not used again/offline but foodraw still is at 0.03 but why is that?


the only answer is the bot is still working at very low price
but the goldflow into the game because of rocketbuilder-goldbuyers is higher so monetary market gold value is dropping more and more

Administration is attempting to eliminate any way of self-building wealth. The name of the game is you pay money to create wealth, which is what the administration is doing. Any economy in which this is possible is not an economy and to think of it as such is not just stupid, but retarded.

In short, there is no economy. Stop talking like it's there.

@Uncorporated Day 1,895, 15:42

in RL you also pay for education in hope it will bring you (more) wealth in return, you also pay brokers to make more money with the money you have. you pay workers to get more money from the products produced, you also offer to work for less to get a contract, you also offer "services" to clients or businesspartners to get a deal in the future, states give tax insentives to companies (and then whine when the companies go after 3years - after the insentives are canceled and the contract run out)...
it's just crazy this not-economy nothing for free!

@Eisenmutter2

The money you pay in real life goes back into the economy and is value dollar for dollar. The money you pay to eRep is not. In real life you have control of your dollar and options of what to do with it. Also doesn't happen in eRep. In real life there are large corporations, finite society and governments that influence and control the economy. eRep is a lossless society with no control or economic input. I could go on but I only have so much time.

@Uncorporated

Maybe u're right, but I'd say there is something economylike system in erep, but it's heavily retarded.

You have the situation of "perfect competition" on marketplace, but there is only one factor, which really differs your product - price. To sell anything, you have to sell cheap.

Assume, that everybody increased prices by 1,5 CAD (weapons). Then, production would be profitable, but still the one will earn, who put the lowest price. And so so we get dumping.

In real world it is strictly regulated - you cannot sell cheaper than u've produced. Here - you can sell Q7 for 0,01 CAD.

So it's not the problem imho of elimination of wealth, but the problem of control. Nothing can be really done by government, all is kept in hands of producers. And that totally sucks.

@Kokosz Jajko Day 1,896, 0😇4

"In real world it is strictly regulated - you cannot sell cheaper than u've produced."

in real world you can also sell cheaper than you have produced but unless you get funds from outside (=not the production) you will go bankrupt. it's the same here in erepublik with the newbies who produce q1-q4 weapons and lose money. they also go bankrupt and die unless they get money and/or products from someone else.

in RL it is mostly the state who can offer services cheaper than the needed costs for a certain quality of the service. thats why privatisation is not always a good thing.

@Uncorporated Day 1,895, 2😇8

the money from goldbuyers in erepublik goes into the game because some of it goes into weapons to build rockets. just a part of it is gone when people build companies. in RL the moey from money savers and on stock exchange doesn't flow into the economy. and the money paid on stock exchange is not really the value of the company (their shares). also the prices of food for example is heavily influenced by state-subsidies and is in some cases really like the bot in erepublik.

with the financial crisis the value of money and goods also is questionable. and in the euro area we have seen huge differences in prices from before € and with €

in erepublik i also have control of my money and i trade on MM, buy q7weapons and buy/sell q1companies. others produce q2 weapons, build q4raw companies and sell q1 food...

some days ago the MM crashed from 1gol😛333cc to 1:270
reason was Banco de Espana because they were dealing with 3659.00 GOLD. low prices in erepublik are also the product of corporation empires and the small man (because everyone here is a businessman) that create massive overproduction. but yeah the only variables now in economy are taxes and boni

@eisenmutter2

Some cases of selling cheaper than production cost can be treated as "unfair competition" which is punished by the law