Friday, October 30, 2015

So as I explained last time, each team has different costs for the four different markets, so each team will have their own unique advantages and disadvantages. So each time has to decide which market that they want to enter, and how much capacity, or capital, they want to purchase, which is used to produce the product. Each product in the market also has a marginal cost for each unit of the product that is produced.

There are eight different teams, and only four different markets, so its almost inevitable that more than one team will enter the same market. What happens in that case? This is where the real challenge of the game starts, because you have to try to predict 1) what market the other teams will enter 2) how much capacity they will purchase for that market and 3) what price they will charge for the product.

I will wrap up talking about this game next time!

No comments:

Post a Comment