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Question about Supply Quality

Topics: Beginners: Question about Supply Quality

kreisaisjelis

Wednesday, July 16, 2014 - 08:11 am Click here to edit this post
Do I understand correctly, that output quality (product quality for corps and welfare for countries) depend only on average quality of supply units?

I.e. if my process requires 1 unit of Boats and 100 units of Services, then doubling the quality of a boat will have the same effect as raising quality of Services by 1 unit?

Christos

Wednesday, July 16, 2014 - 08:52 am Click here to edit this post
No, it used to be that way and we made a nice buck out of it back in the day. Now what matters is the value of the supplies, not their volume. So, if the boat in your example costs 1000$ and 100 units of Services also cost 1000$ then their quality has equal weight to the output. If the boat costs 1M$ however, then it's quality weighs 1000 times more than the quality of 1000 units of services.

kreisaisjelis

Wednesday, July 16, 2014 - 09:12 am Click here to edit this post
Ok, thanks.
No free cookie for me, then ;)


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