On the topic of undercuts, yes, unless you can produce a good for a lower price than the preexisting means of producing a good (assuming that is it priced at a competitive market price), then undercutting the price will inherently result in lower profit margins and as competing firms lower their prices to remain economically viable, the prices will continue reducing to the point of being unsustainable. This is something that is natural in a free market economy and not really a problem as it keeps goods at a stable equilibrium price, and so the best way to undercut is not simply to lower the selling price, but it almost necessitates the increasing efficiency of manufacturing, which helps the server by creating a more efficient overall economy.
As it pertains to the server as of right now, I'd say that the labor supply/labor efficiency isn't exactly a large issue as many facets of the economy remain at a relatively low efficiency ceiling (ex. mining) which allows for newer and less established players to earn money (albeit at a less efficient rate than established players who partake in higher potential areas of the market), while still leaving much of the market up for optimization which allows for players to enter the aforementioned high potential markets and make it big while benefiting everyone else by driving down the price and increasing the overall supply of a limited resource.
If I had to point out a far larger issue in the economy as is, it would be the lack of the market as it stand, to manage the recessionary periods in the economy and stabilize massive fluctuations in the circulating money and asset supply in the event of a server update which would significantly alter the pool of available goods and services. Whether is be a influx due in part to decreases in the savings rate resulting in a surge to the pool of circulating money, of a change to the loot-pool of drops reducing the supply of an in demand product.
Seeing as you joined during one of the worst recessions in recent server history, I can see why you may see particular parts of the economy as flaws but I can assure you that for the most part, the economy is very strong and reliable on this server, especially in the areas which you pointed out.Statistics: Posted by smok98055 — Wed May 04, 2022 6:03 am
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