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[LoSboccacc]

while I'm waiting the lower link of the production chain to finish up their work I bought random stuff from the market and I'm now producing....

peanut butter!

99$ for 1000!
and they goes for 10$ each

I think I could just have gone with a higher product, like cars, and then moving down the chain instead than starting from lemons and moving up the chain

[Zangi]

Yeah, we are buying up all the coal below a set price and re-selling it at that set price. That way we dominate the coal market and get to set the prices.

And what happens when you run out of money?

I don't run out. Since I bought all the coal everyone who needs coal is buying from me.

Except for the other people selling coal for $13 or more.

I'm sure the basics of economics applies to most players.  Buy low as possible.

[Scelly9]

Legion Industries. I'm currently aiming to produce a shitload of coal by myself.

Do you have a Skype, so we can coordinate better?

I have skype, but I don't have a mic. If you just want to use chat then I'll PM you my account.

[Voxel_Squid]

So eventually everyone who needs coal will produce it himself, killing the coal market completely?

Well there is a balance to be kept between price and revenue. Since demand is not a specific number, but rather a function of price vs quantity, everytime we increase the price, the amount we can sell goes down slightly. However, there is a point at which our marginal revenue = marginal cost, (price*one more item sold = cost of producing one more item), which maximises our profits in a monopoly or cartel.

[Aklyon]

I'm guessing the My Secret Company is the admin, Scelly?

[Scelly9]

Yeah.

[Voxel_Squid]

by the way guys, if this coal cartel is to work, we do have to restrict the amount of coal we produce. If at some point we find that we cant sell all the coal we put up, we either have to restrict supply or reduce prices.

[Dariush]

By the way, does anybody want to make a tungsten powder cartel? The market is currently empty and I'm aiming to get lots of it, due to primarily producing electronics.

[Scelly9]

by the way guys, if this coal cartel is to work, we do have to restrict the amount of coal we produce. If at some point we find that we cant sell all the coal we put up, we either have to restrict supply or reduce prices.

One thing on that note: The guy that bought all the coal (the admin) said that he does that regularly to fund his steelworking. That means we can put the price up high, but he will still buy it. Its probably not a good idea to bet all our money on that, but its something to think about.

[Aklyon]

By the way, does anybody want to make a tungsten powder cartel? The market is currently empty and I'm aiming to get lots of it, due to primarily producing electronics.

As soon as either my company does not suck (or the reset button gets added), I'll join you in this. tungsten powder takes quite a bit more time/money to produce than silica sand or coal, though.

[Dariush]

What causes a share price to rise?

[Voxel_Squid]

by the way guys, if this coal cartel is to work, we do have to restrict the amount of coal we produce. If at some point we find that we cant sell all the coal we put up, we either have to restrict supply or reduce prices.

One thing on that note: The guy that bought all the coal (the admin) said that he does that regularly to fund his steelworking. That means we can put the price up high, but he will still buy it. Its probably not a good idea to bet all our money on that, but its something to think about.

Well I was thinking more long-term. Right now we can probably expand production quite a bit before exhausting the market (ie Ratan Joyce/secret company).

[Toaster]

What causes a share price to rise?

Sacrificing goats in the dead of night.


I'm guessing net worth, but if people buy a stock, the price goes up, and if it's sold, it goes down.

[Zangi]

by the way guys, if this coal cartel is to work, we do have to restrict the amount of coal we produce. If at some point we find that we cant sell all the coal we put up, we either have to restrict supply or reduce prices.

Well, you won't have to produce as much if you buy out all the lower prices.  There is nothing stopping you from stockpiling 'infinity' coal, except for your cash reserves.  Its basically a matter of tying up your money in holding coal and picking up more.

[Brons]

I think this is intriguing but I don't understand what's stopping a very rich player from investing $100 million or more in a coal mine and destroying you guys. That's probably what I would do if I wasn't broke.