Ragnarok
2011-08-13 |  | Food/Tax Hybrid Strategy pt 2 |  |
"So what`s the deal? How do I figure out the best economic strategy to follow for my empire and free myself from market tyranny?" you may ask. The secret lies in knowing your empire and how to calculate the best food price points to switch from a tax/agri to hybrid or hybrid to agri/tax.
Now there are lots of variables such as housing/agriculture infrastructure, racial modifiers, and so on. Every empire is set up differently so there is no single "best" price point.
So in order to find out what price points are, first find out what you can make going full tax. Next, find out what you can make in food units when going full agriculture. And lastly, find out what your income would be when going hybrid.
You also have to consider cost of goods into your calculations of cost if you choose to go with the goods adjusted income (which you should if the goods market is not sold out, but should not if goods are scarce).
Next step starts with figuring out your tax break-even point. Your tax break-even point is generally set for your race, and there is a goods adjusted breakeven point and the non-goods adjusted break-even point.
To figure out the (goods-adjusted) tax break-even point, add the cost of goods (goods consumption * 4) and the cost of food (food consumption * current average food price). Adjust the food price up until this number is just below or equal to your (goods-adjusted) income. That number is your tax break-even point.
Why is this important? Because you want to go full agriculture if you can sell food above the break-even point. However, if market prices are BELOW your break-even point, well ask yourself this question. If your breakeven point was 17, and market is currently accepting around 15, would you rather sell all your food at 17 per unit or at 15? The answer should be obvious.
But there comes a point when it is better to go full blown tax instead. See part 3 for more details. |
