The Economics of Farmville

I played a lot of Farmville during its ripe days, enjoyed the game, and gained a lot of realizations from it. It opened my eyes on some academic realities of studying economics that I only heard in a classroom and never really gave it a thought in reality.

This game thought me how commodities in the process of products move from production to end up to the end consumers. Human needs flows from the source to the end of the consumption chain, and business enterprises plays a big role in facilitating this flow to fulfill these needs.

Products usually start from the farm (called the producers) where crops and livestock are tended and harvested. These agricultural produce are then carried from the farm to the market or food processors (called the supply chain) where it is sold or processed to add value to it. Ultimately, these products end up in the groceries and now sold to customers (called the consumers).

Businesses make this process possible. The main core of starting an enterprise is to satisfy human needs, and when an enterprise successfully fulfills them, then these businesses tend to grow and live longer. For them to be motivated to continue doing this, consumers are willing to pay for them so that they will end up with a profit. This profit, in turn, is used to engineer more products that changes our lifestyle and by making our lives easier.

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This article is sponsored by Armani Exchange.