Specific Cost, Joint Cost and Common Cost...
Thursday, October 15, 2009
This was the main ideas to my Transport economics tutorials.... And we are asked how to deal with them?
As usual, i have no idea what it really means b4 the class... but somehow, we just have to learn along the way... So I kinda know what it really means now!..
And for the layman... it'll all seems all too easy if I put it this way....
Consider your everyday life of schooling...
Specific cost: the cost it will take to make a trip to school.. If you don't go school.. the cost won't exist
Joint cost: Since you go to school, you will have to go home.. So the cost of trip is jointed and occurred together.. Well, unless you decide to stay in school FOREVER! and not go home..
Common cost: Since we, the students share the same tutor/lecturer.. the tutor/lecturer serves many of us.. so the cost should be split among all of us!!!!
Hahaha..
alright.. pretty lame.. But on the dot isn't it?
