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A recent crisis hit the food market, precisely Q3 Food with prices falling down from an average of 3.6 to a 2.99 and risking to go even more down which definitely will create losses to all companies.

Either they will sell at loss, or will not sell, thus losing revenu and paying salaries or even being obliged to stop activity

The Causes
demand/Offer Balance
Direct cause is flooding the market with products, the laws of economics apply here, the product's price falls. Too much food that is over the capacity of the market to absorb, too much companies actively competing.

some other causes are related to Game mechanics.
illimited resources: Apparently raw material in the game are illimited. It means Grain companies can produce without limit, which means that there is no ceiling for food production.
Limited benefit of food Food need to be more beneficial and can be consumed more than once per day, so need and demand will increase
Workers in Demand
Almost always, companies are in competition for workers. which is not normal if we compared with real life. That makes salaries higher, and production costs higher.


THE CONSEQUENCES
Companies either forced to:
1. stop production: which means no work and people losing work and income. more companies going out will strain the job market and reduce the salaries. Too much and there will be people without work.
2. Reduce Salaries

SOME SOLUTIONS THAT MAY WORK:
For the Admins
- ALLOW people to consume more than one food per day and program some advantages to that so consumption and demand will increase
- Make resources limite😛 Oil-Grain-Diamond should have a limited production capacity per day. If we put now 100 Grain company in one high region, they can all produce as if the fields and fertility is limitless. Putting a limit will make available grains limited and it will not be easy to over produce food.
- reduce the number of employees needed for a company for max efficient production (ex/ 5 instead of 10) . This will decrease total production, and create less competition for workers, and less production
- Give government the right to license companies created in their country and to control the price of foreign licenses
- Give a way by which managers can easily know the daily consumption of certain product


For Citizens who have companies to manage and Governments
- Price Fixing. this have the disadvantage of that a company can be before the others and will get better sales even if the others are giving equal price. I still do not understand on what basis a company comes before the other on equal price. When i verify it, i will see if it gives equal chances to all. This one is stil practical and tried by our minister of commerce, but failed due to a simple glitch. There was no date and time fixed at which all companies fix the price together, and because of the unfair classing mentioned earlier

- Production fixing. Doing like OPEC. Each company have a sales limit. for example, each company are allowed to sell 30 units per day, this gives equal chances and prevent the market from being over-flooded by controlling supply. side effect, there will be surplus. This can be solved by flooding other countries markets 🙂 which i did not yet analyzed the consequences on our international relations. The difficulty here is in monitoring that everyone observe the quota and does not cheat