Just as our emotions and thoughts affect our actions and decisions, so our emotions and thoughts affect our emotions and decisions. The more of these you know, the more you will be able to handle. The problem is, most of us still find it hard to see the real cost of things, or how much we don’t make. We can be so quick to blame others and the economy for the loss of money and productivity, but we never fully understand the true cause.
The real cause is money, but you don’t have to be a capitalist to understand it. You just have to be willing to look at your actual costs and how it affects who you are and how you decide to act. That’s the easy part. The harder part is knowing how to look at it and how to act on it.
Well, if you can only afford to purchase some of those pricey things, then you should be able to make some money, right? In the real world money is not a constant, but it is a product of the economy.
Total revenue is the amount of money you make in the course of doing something. Total cost is the total amount of resources you use to perform the same action. Total cost is the cost of doing something, plus any additional resources you use. But you can compare the two and see where it’s not so bad to have more total revenue. There are few things in life that are worth more than money.
The best example of this is the car company, Ford. In the 1970s Ford sold a few thousand automobiles for $5,000. Today its total revenue is in the hundreds of millions, and its total cost is $400,000,000, just for one car.
In fact Ford can be compared to the cost of a single person, with some very important exceptions. In the 1970s Ford sold around 200,000 cars. Today it sells about 1.4 million.
The other big exception is the cost of Ford’s factory in Dearborn, Michigan. This factory cost Ford $4 billion in 2008, and we’ll say $7 billion in 2012. So Ford’s total cost in 2008 now is nearly the same as the total cost of a single person.
The cost of a car is one of the biggest expenses in any kind of business. The average American family spends about 1.2 million dollars per year on their cars, and this number is projected to rise to 2.3 million in 2025. So what did Ford do to make such a profit? It used to be when the company made 1 million cars each year (1 million + 1 million = 1 million) Ford made almost every car it sold.
However, the number of cars produced does not directly equate to the number of cars sold. The Ford Motor Company was not the only company to make their cars with the engine on the back of the hood. The Ford Motor Company also made cars with the engine on the front of the hood. The Ford Motor Company is a company that has used the idea of “total production” to help explain profits.
Total production of something means the number of items sold divided by the total number of units produced. Total cost means the total cost of the item divided by the total number of units sold.