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10-28-2010 @ 4:51PM
My talents as a College grad with a usable degree gives me an excellent starting point for fair market value of my time per hour. My time per hour might diminish to $20, then again it might not. I could accept a job with longer hours, at a considerably higher salary, if we want to get into pedantics.And opportunity cost refers to the HIGHEST AND BEST USE of your time which means that if I go raid or farm mats, then I have to apply that time against the best use of my time. I could haul garbage...I can also do my job presently. I'm not supposed to calculate the cost of every profession that I can earn a buck with; opportunity cost calculates the best use of my time.Anyway, it's funny to see people not think of time spent as "spending"; these are the same mouthbreathers who employ the 'I farm for free argument'; every use of your time has an equivalent dollar amount attached to it whether or know it or not. By spending your time in that alternative method, it costs you real money to raid.I don't write a check, but money was 'spent' because no money was earned. Only if my alternative were some other form of goofing off, does the opportunity cost drop to zero.If you need numbers to make this real for you: If you raid 12 hours a week, and could instead make $20/hour, then raiding costs you $240/week of opportunity cost. That cost of raiding, adds up to $12,000/year. After subtracting taxes, which you don't keep, the real cost of raiding is roughly $9,000/year.Option A: Raid (lots of epics), and have just as much real money as you have now (0)Option B: Play the AH (lots of gold), don't raid, have just as much real money as you have now (0)Option B: Stop raiding (no epics), stop the AH, start working and end the year with an additonal $9,000 in real money.If you don't think raiding costs money after that, then I don't think you ever will.(Also, did I really just have to lay out opportunity cost for someone operating a gold column? Really? I know the target audience of this site is casual, but c'mon, that's intellectual laziness.)
10-28-2010 @ 5:23PM
Your model lacks to account that you are salaried. Unless you garner extra WAGES for overtime (assuming it is even available), or a bonus somehow tied in to your model with a coefficient relative to a given probability you will gain said bonus, you are not using a proper model and your whole argument is null. And how long did you spend writing up this poorly founded post? Ten minutes? Le gasp, thanks for the $4.25 (1/6 of your $25/hr rate). Oh wait, that's not how it works.Furthermore, your model also fails to account for the positive externality of the enjoyment gained while playing the game, the learning, the relaxation all do not fit in to your monetized model.As an aside, you said "if we want to get into pedantics." Not only is that not a word, I find it ironic that you used a plural (?) form of a non-noun that means to be ostentatious in one's knowledge.As another poster said, your econ professor would cringe if he read your posts. Just because you got an A doesn't mean you learned anything.
10-28-2010 @ 5:33PM
so 25 divided by six is 4.16, not 4.25. Long week, terrible mental math.
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