Post by MostWanted on May 2, 2017 14:13:33 GMT
Hello, so I am going to use a bit of economics to try and explain why making mass workshops like some "tops" is not good at all, in some cases counter-productive.
First we need to understand some basics of economics. Every economy consists of Demand (D) and Supply (S).
Demand/Supply diagram for a specific product tells us how much (quantity) of a product people want to buy for different prices. It also tells us how much are firms ready to produce for different possible prices. For example, if price of bread in the market is 3 euros, firms will produce maybe 2-3 breads per day. If price is 10 euros per bread, firms will want to produce more, so they can earn more. It's pretty simple. If it's more profitable, they want to produce more.
Now, in turns of buyers in the market, they want to buy more products if price is lower. You can also see it on the graph (D line). Where D line is at highest point (highest price), Q is very low, means not many buyers will buy it. But when price is very low, then everyone wants to buy it.
Now, what determines for what price will firm sell the product? What determines the market price? It's the intersection of D and S curves (equilibrium). Equilibrium is the most profitable combination for society/market/firm and they do not want to produce more or less. Equilbirum shows the combination of how much people want and need and how much firms want money for it.
Now, as you can see, firms will not produce maximum quantity to infinity, because thats not most profitable. No, they will produce the equilibrium price. Mistake of SHC players? They always just want to go maximum on everything. Maximum farms, maximum workshops (some morons even make more than 60) etc... They simply didn't go to school and don't know basics of economics, and then they ask me to teach them
So, why is it not good to just make maximum number of everything like workshops? Why do firms produce exactly equilibrium price?
The explanation is found in the LAW OF DIMINISHING MARGINAL RETRUNS.
"The law of diminishing marginal returns is a law of economics that states an increasing number of new resources causes the marginal product of the next resource to be smaller than the marginal product of the previous resource at some point.
"
I know many of you don't understand what this means, so I will explain it using this example:
If you have 1 farmer (resource), he can make you 10 wheat per hour.
If you have 2 farmers, he can make you 20 wheat per hour.
If you have 3 farmers, and they work on same farm, they start hitting each other because the farm is small, and this time all of them are a little bit slower, they make 25 wheat per hour.
If you have 4 farmers, its very tight on the farm and they are very slow, they make 27 wheat per hour.
If you have 5 farmers, they can't work because farm is too slow and they can barely move, they make 24 wheat per hour.
Do you see the point? As more workers or any other resource of production you have, less efficient they are, because of many reasons. This law works for ANY INDUSTRY/FIRM! How does it work in SHC?
Well, first workshop you make is usually very close to stockpile and armory, so he travels very short to deliver weapons and take wood. Result is a very efficient worker. Second workshop you make is also very good. But after 20, you start building workshops far more away from armory then first ones, and they become less and less efficient. 50th workshop need to walk AAAA LOOONG WAY to pick up wood and to deliver weapons.
Then there are additional problems. More workshops you made, more pop you have wasted. Person without workshops has 360 available pop after 10pt, person with 60 workshops has only 300. Want more problems? The more workshops you make, more often you will have to buy wood. More often you will have to sell weapons.
As you can see, more is not always better. In start, it usually increases and gets better, then at some point stop getting benefits and workhops cost you more than you pay for them, and then at some point workhops are there just to waste your pop. One more example is presented on the picture below:
As you can see, 8 workers (units of labour) produce less jackets than 6 workers.
I hope this was enough to make some of you understand some basics of economies and why only retards can make mass eco and think that makes them expert. No, an expert in economy is someone who knows how to calculate all costs, factors of production, production possibility curves (PPC) and then come up with the best equilibrium solution to supply the market.
I have a lot more ideas on how to show you some basics concepts, next would be bread vs eco, why and how. If you want more economic tutorials of this type, please leave a reply and tell me!
First we need to understand some basics of economics. Every economy consists of Demand (D) and Supply (S).
Demand/Supply diagram for a specific product tells us how much (quantity) of a product people want to buy for different prices. It also tells us how much are firms ready to produce for different possible prices. For example, if price of bread in the market is 3 euros, firms will produce maybe 2-3 breads per day. If price is 10 euros per bread, firms will want to produce more, so they can earn more. It's pretty simple. If it's more profitable, they want to produce more.
Now, in turns of buyers in the market, they want to buy more products if price is lower. You can also see it on the graph (D line). Where D line is at highest point (highest price), Q is very low, means not many buyers will buy it. But when price is very low, then everyone wants to buy it.
Now, what determines for what price will firm sell the product? What determines the market price? It's the intersection of D and S curves (equilibrium). Equilibrium is the most profitable combination for society/market/firm and they do not want to produce more or less. Equilbirum shows the combination of how much people want and need and how much firms want money for it.
Now, as you can see, firms will not produce maximum quantity to infinity, because thats not most profitable. No, they will produce the equilibrium price. Mistake of SHC players? They always just want to go maximum on everything. Maximum farms, maximum workshops (some morons even make more than 60) etc... They simply didn't go to school and don't know basics of economics, and then they ask me to teach them
So, why is it not good to just make maximum number of everything like workshops? Why do firms produce exactly equilibrium price?
The explanation is found in the LAW OF DIMINISHING MARGINAL RETRUNS.
"The law of diminishing marginal returns is a law of economics that states an increasing number of new resources causes the marginal product of the next resource to be smaller than the marginal product of the previous resource at some point.
"
I know many of you don't understand what this means, so I will explain it using this example:
If you have 1 farmer (resource), he can make you 10 wheat per hour.
If you have 2 farmers, he can make you 20 wheat per hour.
If you have 3 farmers, and they work on same farm, they start hitting each other because the farm is small, and this time all of them are a little bit slower, they make 25 wheat per hour.
If you have 4 farmers, its very tight on the farm and they are very slow, they make 27 wheat per hour.
If you have 5 farmers, they can't work because farm is too slow and they can barely move, they make 24 wheat per hour.
Do you see the point? As more workers or any other resource of production you have, less efficient they are, because of many reasons. This law works for ANY INDUSTRY/FIRM! How does it work in SHC?
Well, first workshop you make is usually very close to stockpile and armory, so he travels very short to deliver weapons and take wood. Result is a very efficient worker. Second workshop you make is also very good. But after 20, you start building workshops far more away from armory then first ones, and they become less and less efficient. 50th workshop need to walk AAAA LOOONG WAY to pick up wood and to deliver weapons.
Then there are additional problems. More workshops you made, more pop you have wasted. Person without workshops has 360 available pop after 10pt, person with 60 workshops has only 300. Want more problems? The more workshops you make, more often you will have to buy wood. More often you will have to sell weapons.
As you can see, more is not always better. In start, it usually increases and gets better, then at some point stop getting benefits and workhops cost you more than you pay for them, and then at some point workhops are there just to waste your pop. One more example is presented on the picture below:
As you can see, 8 workers (units of labour) produce less jackets than 6 workers.
I hope this was enough to make some of you understand some basics of economies and why only retards can make mass eco and think that makes them expert. No, an expert in economy is someone who knows how to calculate all costs, factors of production, production possibility curves (PPC) and then come up with the best equilibrium solution to supply the market.
I have a lot more ideas on how to show you some basics concepts, next would be bread vs eco, why and how. If you want more economic tutorials of this type, please leave a reply and tell me!
And yes Destiny, I will soon evaluate, calculate and make a tutorial on which weapons are best to produce and when
