Question

In major cities, as the development goes on, the parking generation rate increases rapidly which leads to major parking problems. Same is the case with our college over the years as the college is growing in size student’s strength has also increased manifolds. One of the issues often discussed among the student is the Parking problem Assume that the college calls on private companies to submit a proposal to manage the parking. You are taken as an adviser to the company to help them draft a proposal.

Based on the Factor of production used what will be your approximate TFC, TVC, TC. The answer needs to relate to the estimated Supply of your service provided on daily and monthly basis with fluctuation taken into consideration. Elaborate with a table.

Answer 1

Ans:-

Factor of production Labor, capital, land and entrepreunership.

• Land:- The principal factor of creation is land, yet this incorporates any regular asset used to deliver merchandise and enterprises.

This incorporates land, however anything that originates from the land.

Some basic land or regular assets are water, oil, copper, flammable gas, coal, and woods. Land assets are the crude materials in the creation procedure.

Factor installment is the pay.

• Work Labor :- is the exertion that individuals add to the creation of merchandise and ventures.

Factor installment is the pay.

• Capital :- The apparatus, instruments and structures people use to deliver merchandise and enterprises.

Factor installment is the rent.

• Entrepreunership :- An entrepreneur is an individual who consolidates different factors of creation - land, work, and capital - to procure a benefit.

Factor installment is the profit.

• Total factor cost on a month to month premise cost of renting land, cost of renting technology

Total variable cost every day cost of employing laborers

Total cost is the total of TFC and TVC.