The Finale: Does Money Make The Movie? A Look Into Film Budgets Versus Their Achievements

Credit: Pictures of Money @ flickr.com

The economic principle I examined was opportunity and scarcity and how it is seen in the movie industry. There are many situations where this economic principle can be applied to the real world. For instance, while studying budgeting in movies, I found many examples of this principle. First, how directors and producers distribute their budgets. This idea is purely how the react to scarcity of budget, and where to distribute it for the biggest return. Though Disney does this on another level, many independent films aren’t able to make budget breaking movies and instead rely on the little they have and make the most of it. Second, how budgets affect the Oscars. This demonstrates again the use of scarcity in order to get an Oscar, or if it is even worth it to take the extra steps to try for one. Third, how much is an Oscar really worth, and is it worth it to try? It was a justification for using scarcity of budget for an Oscar, because though 300 films are eligible and only 10 are selection for Best Picture nomination, a nomination alone brings a 247% return on investment in the box office. Overall, you can see that  budget should be spent on whatever makes the money.