At times, it is useful to really calculate production costs for a determined commodity.
My question is as follows:
Take the example of METAL ORE
Production Cost shown in the Production Tab is 450$
Market Price is: 635$
Now. Any person would feel tempted to go and produce locally since the market price is over the production cost. However, according to what I've read, that production cost doesn't include row material costs
. It's only like a fixed production cost per unit.
Once we try to calculate the real production cost, accounting for the row material prices, we have it as follows:
According to the DEFAULT.WMD file, METAL ORE requires 1 Unit of Power and 2 Unit of Oil. (I guess that's for a regular mine, don't know anything on Composite Ore)
so, calculating each usage of them at the current lowest price, we have 671$ that we have to add to the Production Fixed Costs.
Does that mean the real price to produce Metal Ore is of 1121$
That's my question. Is the production cost shown at the Production Tab a Price without Row Material??
Where can I read a detailed consumption of commodities to produce one unit of another commodity (sort of like 1 Ore and 1 Ind Goods for Cons Goods [bad example])??