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Economies of Scale
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Scott (Admin) RJ: Ratan Joyce CO: Ratan Joyce Post Rating: 1 + / - Total Posts: 1175 Karma: 5083 Joined: Jan 13, 2012 |
Posted on Mar 25, 2012 (Last edited on Apr 13, 2012) The other proposed system change is to finally add economies of scale to Factories and R&D (not stores).It will come in 2 components: 1. Lower costs (Economy of Scale) This means while you may use 1 lumber and $8 to produce 10 charcoal, you may only need 90 lumber and $72 to produce 1000 charcoal. The more you produce, the lower the per-unit costs. This bonus will have an asymptotic value for a production of infinite quantity. Since the production size have a time limit of 7 days, larger buildings will have a higher max production limit and therefore benefit from the lower costs. 2. Maintenance/Salary (Diseconomy of Scale) All buildings will have an equal amount of maintenance fee per m^2 to start with. However, smaller buildings will cost less in salary, while larger ones will need to pay more in salaries due to extra number of employees in management. Together, it means larger buildings will need to pay more in maintenance/salary per m^2 of building. Essentially, you will need to balance the higher maintenance with lower cost to achieve an ideal firm size. You can read more on economies of scale here: http://en.wikipedia.org/wiki/Economies_of_scale |
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CEO Kogut RJ: Kogut Post Rating: 0 + / - Total Posts: 29 Karma: 10 Joined: Apr 13, 2012 |
Posted on Apr 13, 2012 /b, not b/ (HTML tags are broken)
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Scott (Admin) RJ: Ratan Joyce CO: Ratan Joyce Post Rating: 0 + / - Total Posts: 1175 Karma: 5083 Joined: Jan 13, 2012 |
Posted on Apr 13, 2012 Oh no! Somebody hacked my account! Just kidding.
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