Resource output & Production Output.

Guest · Post by **Guest** » 10.02.2007, 17:18

what you are talking about is opportunity cost i presume. however, in the long run, in my view, it is better to have a good expanded building than too many single buildings (i mean 20 sqm ones). less clutter in my production page and i get to produce more items faster in my view. also, the reason why i am expanding is there is the thing posted about production maximization i think in the game. and i was just thinking maybe that could be achieved through thorough expansion. XD

also, i am the kind of person who'd rather wait and pile up my resources until they are a good sizeable amount before i put it out in the market so expanding works for me. and i'm a bit of an OC as well so i like a cleaner production page. less buildings but more space and capacity in my buildings. ^^

Guest · Post by **Guest** » 10.02.2007, 20:16

hah, im exactly the opposite

i have 4 of some buildings, and 3 of others ... its just the demand early on for buildings ... besides, at the level of manager (a long long time from now lol) ill sell off the extras to noobs for a decent price

Guest · Post by **Guest** » 11.02.2007, 01:30

Actually, lower production costs are better long-term.

Guest · Post by **Guest** » 11.02.2007, 01:31

And opportunity cost is an intangible thing that should be considered. But if you make more off raw-materials than you do building something out of them, something is wrong in the market for that product.

Guest · Post by **Guest** » 11.02.2007, 01:53

Actually, where opportunity cost will really matter is:

1) How much will I lose in revenue from expanding this building at this time?

2) Will it be better to make every building to produce what's needed for the industry I want to be in? Or is it better to build more factories for production and buy from market? The former allows for lower production costs. The latter allows for higher production.

When interest is a factor

1) Is it better to invest my 100,000 in bonds at 10% interest or can I create a business and generate a better than 10% return?

Guest · Post by **Guest** » 11.02.2007, 15:27

ShatteredPixie wrote:what you are talking about is opportunity cost i presume. however, in the long run, in my view, it is better to have a good expanded building than too many single buildings (i mean 20 sqm ones). less clutter in my production page and i get to produce more items faster in my view. also, the reason why i am expanding is there is the thing posted about production maximization i think in the game. and i was just thinking maybe that could be achieved through thorough expansion. XD

also, i am the kind of person who'd rather wait and pile up my resources until they are a good sizeable amount before i put it out in the market so expanding works for me. and i'm a bit of an OC as well so i like a cleaner production page. less buildings but more space and capacity in my buildings. ^^

Klasanov wrote:And opportunity cost is an intangible thing that should be considered. But if you make more off raw-materials than you do building something out of them, something is wrong in the market for that product.

I was actually referring to the cost of the building, not the profits from products. It depends on how you view cost. From what I have been told, 2 20m2 bldgs produce slightly more than 1 40m2 bldg. Someone pointed out (I can't find it now) that expansion is cheaper than a new bldg if you can supply your own resources. But my point is, if you sold the raw materials needed for expansion, then you may find that buying a new bldg is cheaper; and it still produces as much or more than the expanded bldg.

I agree with ShatteredPixie about the clutter, but I think I will do like Getus and sell off excess bldgs when I am Manager and own a lot of bldgs. For now, I can handle the clutter if I grow faster.

Note: I have noticed in some cases it is better to expand. For instance, my gas station is much cheaper to expand than build new. Maybe this is a production versus sales difference; I don't know yet. Just goes to show you, everyone should do their own calculation before making a big decision.

Guest · Post by **Guest** » 20.03.2007, 05:22

Tycoon wrote:green area: 17.82 units per hour, costs: 4.5 + material
red: 22.28 / hour, costs: 15/ unit

This is the exact information I'm looking for! Thanks.
But could anyone post here the same comparison for other products in the factory?
Also, how much does it cost to sell products from green in red area (I guess, there is some transportation fee)?

Tycoon · Post by **Tycoon** » 20.03.2007, 05:22

rasfast: go to www.kapitools.de

there are also the English features and you easily can look it up there and do not have to wait for anybody stating it here...

Guest · Post by **Guest** » 20.03.2007, 05:41

Tycoon wrote:rasfast: go to www.kapitools.de

there are also the English features and you easily can look it up there and do not have to wait for anybody stating it here...

Oh, I forgot about this great tool

Thanks for your help