Who wants to join me in my crusade to lower the power prices

Guest · Post by **Guest** » 27.04.2007, 15:37

we must not let all the corporate elites come in and exploit our well being. Join me and lower the power prices back to .05!!!!

Guest · Post by **Guest** » 27.04.2007, 18:20

Absolutely! I say we march:

Hey suppliers, don't be fickle.
Sell us power for a nickel!

You make the signs, I'll go print up T-shirts. Then we'll meet back here and discuss how silly this all is.

Guest · Post by **Guest** » 27.04.2007, 18:56

Guest · Post by **Guest** » 27.04.2007, 19:03

If 0.06 to 0.08 is such a high price for power, build some plants of your own and start selling power. If you keep building plants and expanding them, eventually you can produce and sell so much power that if you put the price at 0.05 c/kWh, everybody else have to do the same if they want to sell their power sometime this century...

Or are you trying to say that power producers should be in awe of your production chain and sell you their power under market price just for the privilege of seeing you in action?

Or are you saying that we should sacrifice the power plant operators for the common good? Let's nationalize all power plants and put them under Tycoon's control, yeah! Limitless power at 0.27 c/kWh to everybody!

Whose well-being is most important? How about the well-being of those power plant owners? Let's hike the price to 0.10 or 0.26, instead, for then the power plant operators will be really well off.

Or maybe you should just expand your production until it is efficient for you to fax for suppliers... start purchasing your power through contracts at 0.05 or whatever the suitable price is (although I don't understand why anybody would want to sell power at such a low-low price [net of 0.048 c/kWh], since even after the 10% market fee, 0.06 at the market brings you 0.006 c/kWh more profit (net 0.054 c/kWh), and occasionally it can be even 0.07 or 0.08, at which point the profit is 1.5 c/kWh [net 6.3 c/kWh] and 2.4 c/kWh [net 7.2 c/kWh] higher respectively).

Or you could simply bite the bullet, save up 142,500 caps and build your own power plant to Mauritania or some other green zone. The power plant will pay itself back in only 16 days, and you can feel good for creating employment for the poor Malinese.

Guest · Post by **Guest** » 27.04.2007, 19:11

Don't think this was ment serious he he And it is funny as every time one company put a few million power on the market at 0,05c a new tread is made bickering about the low price and about them loosing out on big profits.

Guest · Post by **Guest** » 27.04.2007, 19:59

Yep. No doubt Total S.A. wrote in jest. Underneath the jest lies very real corruption, though.

Here is the thing: power produced by A is his property to dispose as he sees fit, at whatever the price he decides to set on it. If somebody drums up a crusade to force A to sell the power at a lower price than he would otherwise sell it, then that somebody and his cohorts are ultimately robbing A: sell at a lower price or we will destroy you. Your money or your life.

Were this the real life, Total S.A. could argue that A must sell his power at a price dictated by others, for example, because it is not A's in the first place, since he's the beneficiary of countless "services" provided by the society, and he couldn't produce the power without those "services", and if A doesn't yield to this request, he will be destroyed through anti-trust legislation (here is a nice treatment of the subject by the old man Greenspan: http://www.polyconomics.com/searchbase/06-12-98.html) or some other ploy.

Kapilands does not have any mechanisms for such crusades, which is nice, since otherwise this would be a very different game indeed. Based on Unreal engine or somesuch, no doubt

Guest · Post by **Guest** » 28.04.2007, 00:33

There is nothing sinister or corrupted about trying to lower the price of a commodity. In a competitive market, firms are price takers not price setters. If a particular market experience an exceptional high rate of return, it's only rational for more firms to enter the market and try to exploit this high rate of return by flooding the market with cheap products. This is simply a self-regulating mechanism of the free market system.

How low the prices will go all depends on firms' production cost and market demand. So say if i wish to sell my power at .02c per unit and can still keep up with the market demand then i guess all the other power producers have to choose between lowering their price to .02c or drop out of the market.

Isn't this great, so who is with me in protecting the interest of consumer sovereignty?!!?!?!?

Guest · Post by **Guest** » 29.04.2007, 00:35

I think 0.07 is already low enough, if it raised by 0.01 each then i'd probably start selling. i think the water prices should start raising. i produce like 7 million water daily. and i use like 2 million water daily. or i dunno. i just think if i'd have around 5 million water left over i should sell it!

Guest · Post by **Guest** » 29.04.2007, 00:37

what you should do California Corporation if you make that much water make water in one building and the other oil then just sell that oil on the market more profit doing that

Guest · Post by **Guest** » 29.04.2007, 02:52

Oil: 712/day * 24 = 17088
Water: 285148/day * .06 = 17108

Pretty much a wash. At least at q0 (and some days even above that).

But sure, jump out of the water and into oil. As this thread has stated well, entering in and out is the natural reaction to a market where you don't like the prices.

Guest · Post by **Guest** » 29.04.2007, 08:27

As always, quality, quality, quality. If you want to make money with a minimum of investment and planning, stick with rawmaterials where water and power is the easiest one. But as soon as you venture into an other market a high quality is esential.

Depending of your buyer you need atleast q5-6 to sell oil at a higher profit than water. So while expanding your wells, sell water and start research. Spend quite some time to find a reliable buyer and start selling first when you will make a higher profit doing so.

_---------------_

But now we're way off topic rofl
I red your post with great interest, Widgery. And I must say I am most happy that there is no such, even plans for, anti-trust. Closest we get are the cartels which try to gather all supliers to agrea upon a minimum price but none of them have yet started to treat "violators to their agreaments" to controle the market price. If this realm contiues long enough we might see attempts to do so though