A firm is operating with a total variable cost of Rs. 500 when 5 units of the given output are produced and the total fixed cost are Rs. 200. What will be the average total cost of producing 5 units of output?
Total cost= Fixed cost + variable costTC=200+500= 700Average total cost=Total Cost/UnitsATC= 700/5= 140
Students at IITs/BITS are getting a package of 2 crores. Why do companies like Facebook, Google, etc. offer such a huge package to IITians/BITSians?
They’re not huge packages.In fact, it is very mediocre pay when you consider the places these companies are situated and the kind of taxes that they have to pay.Entry level software engineers to these companies are usually paid around $100,000 dollars an annum (which is 60 lacs). The ‘2 crore package’ news that you see is nothing but a hyperinflation, taking stock bonuses, joining bonus and relocation bonus all into one.With $100,000 in a place like San Francisco, you’ll struggle to make ends meet if you go in with a mindset of living the extravagant life. Out of the $100k, around $35–40k will go as taxes. That leaves you with around $60k.SF Bay Area has one of the highest rent rates in the world. Even to rent a hut, you’ll have to shell out at least $20k a year. A decent house with all basic amenities will cost you around $30k. And forget about getting a new house. The minimum salary that can sustain the mortgage payments for the cheapest of houses in SF is $170,000; which is 70% more than what you earn. It’ll take you at least 5 years to command that kind of salary.So, you’re left with $30k now. Labor is insanely costly in the United States. You’ll be paying people between $10 and $15 an hour for tasks such as plumbing, carpentering, mowing the lawn etc. There is no way you could afford a maid or a domestic worker with that kind of salary so expect to do all the cooking, cleaning and laundry yourself.Even if you live on a frugal diet and spend very little on third party labor, the maximum you’ll end up saving is $2–3k. And if you’re the kind of person who likes spending the weekends out partying, then you won’t be left with even that. No wonder the Americans have close to zero lifetime savings.So, if you think getting a job at one of these MNCs will make you rich beyond imagination, think again. It is only the beginning of your career. Don’t have unrealistic expectations about the kind of wealth you can accumulate at such a young age. Getting into these companies directly after college is, no doubt, a fantastic achievement but it’ll still take years before you can walk into any restaurant and order wine without gasping at the price tag.
Suppose a firm is producing 1,000 units of output (Q). Its average fixed costs are $100. Its average variable?
Suppose a firm is producing 1,000 units of output (Q). Its average fixed costs are $100. Its average variable costs are $50. What is the total cost (TC) of producing 1,000 units of output (Q)? It the price (P) of the good is $200, what is total revenue? What is total profit?
Microeconomics Help please. I don't understand this.?
Kate’s Katering provides catered meals, and the catered meals industry is perfectly competitive. Kate’s machinery costs $100 per day and is the only fixed input. Her variable cost is comprised of the wages paid to the cooks and the food ingredients. The variable cost associated with each level of output is given in the accompanying table. Quantity of meals VC 0 $0 10 200 20 300 30 480 40 700 50 1,000 a. Calculate the total cost, the average variable cost, the average total cost, and the marginal cost for each quantity of output. b. What is the break-even price? What is the shut-down price? c. Suppose that the price at which Kate can sell catered meals is $21 per meal. In the short run, will Kate earn a profit? In the short run, should she produce or shut down? d. Suppose that the price at which Kate can sell catered meals is $17 per meal. In the short run, will Kate earn a profit? In the short run, should she produce or shut down? e. Suppose that the price at which Kate can sell catered meals is $13 per meal. In the short run, will Kate earn a profit? In the short run, should she produce or shut down?
What is an example of a linear function's real life situation?
Suppose a car travels at 60 miles per hour. How long will it take the car to complete a 200 mile journey? [math]\displaystyle \frac{1\text{ hour}}{60\text{ miles}}\times200\text{ miles}=3.33 \text{ hours}[/math]