ECONOMY GONE MAD

Day 1,711, 04:52 • Published in Poland Poland • by Nikolay Dimchev Dimov

I have not published articles for a while but the panic that is raging on the weapons market provoked me to prepare short and fast analysis of the economic situation in the game.

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The data I used is from the Polish market but the conclusions derived from it are valid for all other markets that form the Global E-Repulik Economy.

Let us calculate the profits for producing all types of weapons by working as a manager:

Q1 Weapons:
Price - 3.20
Number of weapons produced – 20 weapons
Consumed resources - 200 weapon resources
Resources price – 0.41 PLN
Profit/Loss = -18 PLN[/b]

Q2 Weapons
Price - 6.27
Number of weapons produced – 20 weapons
Consumed resources - 400 weapon resources
Resources price – 0.41 PLN
Profit/Loss = -38.6 CC

Q3 Weapons
Price - 9.68
Number of weapons produced – 20 weapons
Consumed resources - 600 weapon resources
Resources price – 0.41 PLN
Profit/Loss = -52.4 CC

Q4 Weapons
Price – 13.7
Number of weapons produced – 20 weapons
Consumed resources - 800 weapon resources
Resources price – 0.41 PLN
Profit/Loss = -54 PLN

Q5 Weapons
Price – 17.0
Number of weapons produced – 20 weapons
Consumed resources - 1000 weapon resources
Resources price – 0.41 PLN
Profit/Loss = -70.0 CC

Q6 Weapons
Price – 20.5
Number of weapons produced – 20 weapons
Consumed resources - 1200 weapon resources
Resources price – 0.41 PLN
Profit/Loss = - 82 PLN

Q7 Weapons
Price – 87.37
Number of weapons produced – 20 weapons
Consumed resources - 4 000 weapon resources
Resources price – 0.41 PLN
Profit/Loss = 107.4 PLN

The calculations show that the only profitable company by working as a manager is Q7, all other options bring losses to their owner. I should also mention that with this amount of salaries Q7 becomes a loser if you hire workers. The main reason for this situation is the drastic increase of the weapon resources’ price. This is a consequence of the fact that Q7 weapon factories consume extremely large amounts of weapon resources - this increases their demand and thus their price.

I would like to bring your attention to the fact that the players who are self-sufficient on resources will also bear losses if they choose to use the weapon resources for low quality weapons production instead of selling the raw materials directly on the market. My recommendation for the short run is to stop working as a manager in weapon factories and sell the weapon resources produced directly on the market.

What should we expect in the medium term?

Most probably many players will invest in weapon resources farms due to their profitability these days. This will steadily increase the supply for weapon resources and will bring down the price of the above mentioned commodity. So, the profitability margins of the low quality weapon factories will improve. Based on these expectations my advice is not to sell or dissolve weapon factories in order to invest in weapon resources farms. If there are not significant changes introduced by Plato I also expect the profitability margins of Food factories to decrease – my opinion is that many players will turn their attention to invest there which will bring down the price of food and increase the price of the food resources.

Other implications to the economic module caused by the Q7 factories

I would like to stress that the Q7 factories will have an important influence on the average damage needed to earn a Battle Hero medal. On one hand, this will increase the cost needed in order to secure a BH medal – you have to invest in Q7 weapons which are more expensive per hit than any other weapon. On the other hand the price of the gold will be decreasing due to the large amount of gold sellers who aim to finance their investments in Weapon resource (who are currency denominated) by selling gold. These two facts will narrow the “profitability” margin for the people who are earning their income by fighting for BH. Most probably the players who used to secure their BH with rocket and food fights and were able to deliver damage on the sanitary minimum needed for BH will be dropped from the game of the “Every day Battle Hero Hunters” since this endeavor will become too expensive and the risk of losing the medal will still exist.

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