My Entry Into @spectrumecons Economic Challenge 3

To be completely honest, this is the first I have seen of @spectrumecons economics based challenges. I only wish I would have seen them sooner, because I think this is really fun and I do enjoy the subject. While I am no economics aficionado, I will give it my best shot.

For the 3rd challenge, in a nutshell, we are to pick a city to buy a good and another to sell the good or to do nothing at all. The winner is the one that has the most money at the end of the week, when you sell your goods. The post to get all the rules and information set forth by @spectrumecons is located here. Now on to what I would choose.

So first, the town I will be doing the buying is in Meteor City and the commodity I will be buying is copper. The distribution mean for Meteor City appears to be at $2.50/pound. I will spend all of the allotted $10 million on the copper, thus allowing me to purchase 4 million pounds of copper. Then the city I will be selling the copper in will be Grudge Town.

I came to this reasoning by looking at the mins and maxes of the commodities. In the worst case of buying copper in Meteor City, it would cost me $2.60/pound and I could sell it for the bottom price of $4/pound in Grudge Town. That would mean that I am profiting $1.40/pound in the worst case resulting in a guaranteed gain and profit. Thus ensuring that my initial investment increased from $10 million to a minimum of $15.6 million. In my opinion this was the safest option that would still offer a great return.

Thanks for checking out my entry!