Cattle at the market i last saw was at $47
it takes 30kg of corn
350liters of water
2.43 per piece
now the corn was at $1.40
and the water was at $0.07
so 30 x 1.40= 42
and 350 x 0.07= 24.50
and the extra 2.43
so 42+24.50+2.43= $68.93 - 47= $21.93 is what we should be losing right but we are gaining money with cattle how can this be
Cattle what it really cost to make
Moderator: moderators
You're a thinker farmboy. It's one of the dangers of vertical integration, people don't take intermediate values into consideration. In addition to Cattle, consider:
Silver Necklaces and Diamond Rings given the price of Silver (though to be fair it's probably not a liquid market)
The entire car industry given the price of Steel
Jeans & Shoes given the cost of Textiles
and there are a few smaller examples.
IMO retail on these products just outright stinks. Especially compared to a Gas Station. It's outright game imbalancing to the extent that most of the products might as well not exist.
I mean look at Wine, another product available on the market for below the sum of its parts. Even if you were to make all your own ingredients and break dead even, you couldn't sell out a rack in 24 hours. Doing that in a gas station, you can sell at four times the cost and still dump a rack in 12 hours. This despite the fact that there are already way more gas sellers than wine sellers around. (Comparing both at q0 for equivalence.)
Silver Necklaces and Diamond Rings given the price of Silver (though to be fair it's probably not a liquid market)
The entire car industry given the price of Steel
Jeans & Shoes given the cost of Textiles
and there are a few smaller examples.
IMO retail on these products just outright stinks. Especially compared to a Gas Station. It's outright game imbalancing to the extent that most of the products might as well not exist.
I mean look at Wine, another product available on the market for below the sum of its parts. Even if you were to make all your own ingredients and break dead even, you couldn't sell out a rack in 24 hours. Doing that in a gas station, you can sell at four times the cost and still dump a rack in 12 hours. This despite the fact that there are already way more gas sellers than wine sellers around. (Comparing both at q0 for equivalence.)