This past weekend, my mother asked me to help her with her homework, she’s in college and I am so proud of her! She is taking Economics.
So the question went something like this: if company A wants to makes bars of soap at TC $15, and its TR needs to be more than 50% of TC, its labor is at $4, raw material at $3, and entrepreneurial value at $4, will company A benefit or will the opportunity cost be greater than the expected value? Or something like that.
I had to read the ENTIRE chapter before I was able to figure it out. TC means Total Costs, TR means Total Revenue.
Anyways, my sister was like ohmigod, didn’t you, like, go to college?
There is a reason why, we Right Brain people do not go into mathematics.
I like to live in my creative math-free zone.
And yes, I do believe there is an art to understanding math, I applaud you if you are one of those people. But me? Eh.
There is a difference. A big difference!
Nonetheless, I was able to figure out the question and once I got it, I got it quickly.
That’s what usually happens anyways. *wink*wink*
But all the while, I kept thinking, when will I ever need this in my life? As if.
Turns out that the box contains 5L and if a bottle of wine is 750mL, that means that there are approximately 6.66 bottles in the box.
Eeek!! It’s the Devils Box!
In conclusion, your expected costs are very much tied in with the consumption of the good and services you are providing, and in the end, supply really does depend on the demand.