Does the GM plan to fix the econ model for selling below base? (Fearless Blue)

(Please look at the chart below for info)

How is this good economics. When has a corperation EVER sold goods for less the the cost to make it? Right now it takes 1ton of oil to make 1ton of gasoline. Yet oil is 3times more then gasoline and gasoline requires more to make. Its seen across the board for a lot of corps. I think to ensure players make at least some profit or (break even) base cost should be base(bottom line) goods are sold for. Anyone else agree?

Ordering Oil
Base Price 870 SC$ per ton
Market Price without Quality Effects 1,413 SC$ per ton

Ordering Gasoline
Base Price 1,470 SC$ per ton
Market Price without Quality Effects 656 SC$ per ton

You have chosen to build a corporation that will produce Gasoline.
The maximum production of such a corporation is 12,000,000 tons per year.

The new corporation will purchase these products as it needs them in the production process.

Product Monthly Use (Unit) Available
Chemicals 20,000 tons
Electric Power 750 million kwhs
Factory Maintenance Units 2 units
High Tech Services 50,000 units
Oil 1,000,000 tons
Household Products 2,500 tons
Services 25,000 units

its ridiculous that corporations would sell products below the cost of what it cost to make them. no business could sustain for long if they give there money away ?

even Jack says...

<!-Quote-!>Quote:

give "there" money<!-/Quote-!>

*sighs*

I agree SuperSoldierRCP and Jack. Maybe the market price needs to be set based on the average cost to produce the product. Or there could be a stop price decreasing feature. In other words the price would quit decreasing 10% above production cost. just some thougths

Base price is a pivot point. If the product is in surplus, it'll dip below, just as it does in RL. Sometimes, oil wells and gold mines are shut due to the price of the commodity dipping below the cost of extraction.

David is spot on.

If there is a surplus, you can stop selling.
Prices on the market don't stop declining because a producer is making a loss.
you just bankrupt. the production world wide goes down and at some point, orders will be higher than production and the price will increase.

There are shortages in some products that are long lasting.
It makes sense to close some losing corporations and build ones that are profitable.

also, we see many who are trying to sell above their quality and their products remain unsold for several game months until their price goes low enough to sell.

We can of course trivialize the entire trading and make sure everything is always sold, prices are excellent and all corporations make a profit.

On a different but related subject:

We will change the default purchasing quality for beginners to 150. this will be both for countries and corporations.
Currently, some of these beginners, not knowing about quality, are purchasing products at a very high quality and their countries quickly swing to losses because of it.

I will try to push this small change into the update taking place tomorrow, Tuesday.