Some of the discussion here will reference: https://en.wikipedia.org/wiki/Returns_to_scale
I’ve been doing some economics work lately and have started to see how PrUn’s economics compares to reality. One area that might warrant some discussion is “returns to scale”. Returns to scale are about what happens as the scale of production is increased. For example, a company might scale up and build a second refinery. The resulting question is if we double the inputs of production (consumables, materials and buildings) what happens to the quantity of the output? If we double the inputs and the outputs increase by more than double then we have increasing returns to scale (IRS). If the inputs double and outputs are less than half we see decreasing returns to scale (DRS). The situation that we see in PrUn is that when we double the inputs the outputs are always exactly doubled giving us constant returns to scale (CRN).
If you dig around on the internet you can find examples of economists trying to work out the Returns to scale for various industrial sectors:
I’m not trying to advocate for changes to the way things are in the game in this post. I’m just curious if anyone else has looked at this before?
If we did want to have some kind of variability between industries or buildings in terms of returns to scale could it be easily implemented within the existing system? Or is this type of thing too far from the current system to be easily possible? It seems like you could attach a scale value to an industry type, for example Agriculture, that would impact all of the buildings of that type and the production calculations in a fashion similar to how the production line condition works?