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Economic Mechanics

AuthorEconomic Mechanics
Reflecting on the details of the planned economic reform, the Finance councilor Arabat IV the Flamesoul was quite expecting a barrage of questions and even criticism that without fail come down on him. However, expectations and reality sometimes vary enormously, because these days his office has such a siege, as Empire hasnít seen since the last assault of the Kingdom Castle. Perhaps the demon should go out to the central square and read a couple of public lectures on economics.
Dear shareholders and those who plan to become them one day. The Finance councilor Arabat IV the Flamesoul has kindly agreed to give detailed answers to many of your questions.

1) Letís begin at the beginning. What does profit mean in our case? Profit is the difference between the selling price and the artifact production costs. In turns, the production costs is the sum of the prices of the required resources and the working hours with wages, divided by the number of production yield per hour. Let's look at a simple example.

Breastplate of grace manufactory produces artifacts, the cost of which is (0.1 * 3333 + 2.25 * 764 + 0.1 * 363 + 40 * 215) /2.6 = 4111. Accordingly, with the sale price of each artifact at 4442 gold, the profit will be 331 gold for one artifact sold.

2) The Empire's regulatory part in pricing. There are facilities under the Empire for each item of the artifact without shareholders, where a fixed price is set for the artifacts produced. At the same time, when selling artifacts through the imperial store, the Empire automatically redeems the goods from the corresponding facilities with the lowest price, while the price in the store is fixed. If there are several such facilities, then the Empire chooses a random one. Based on this, shareholders have a choice, and they can make the price slightly lower than at the corresponding Empire facility in order to receive a higher priority for the buyback of their products. However, this rule may have ad hoc exceptions based on different market conditions. The minimum price that can be set is equal to the artifact product costs. When this price specified, the facility will not make a profit.

3) Fundamentals of facility re-profiling. It is required that the facility balance has enough gold to purchase resources and produce artifacts for 1/7 of the warehouse for changing the profile of a facility. Artifacts that were not sold on the previous profile are placed in a closed warehouse and become unavailable for sale. When a profile is returned back, unsold artifacts are returned to the main warehouse of the facility. It is important to take into account that excessive re-profiling can be fraught with the emergence of a situation when the facility will not have enough gold for the next profile change. In this case, production stops, and the facility will wait for the sale of previously produced artifacts from the current profile.
4) Assessment of the potential share price. In order to determine the potential share price as carefully as possible, the following factors should be considered:
a) Facility area - as higher this parameter, as more jobs and more products the facility can produce;
b) Facility geographical location - the location in which the facility is located is of great importance. Locations with a Mercenary Guild usually have more job seekers;
c) Shareholder activity - whether shareholders are able to make a unified decision, whether they participate in important voting, and whether they are pursuing the right policy. Accordingly, if you are a shareholder and do not take part in the life of the facility, then you reduce the potential share price.

And most importantly, make your decisions wisely and carefully! The economy loves the risky, but does not spare the reckless!
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