Answer:
The two location will have the same total cost for a volume of 40 items.
Explanation:
The cost function C for the alternatives in terms of the variable cost V and the fixed cost F, being x the selling items, can be expressed as:
C = F +V.x
Thus for the alternatives A and B the corresponding cost function Ca and Cb will be:
Ca = Fa + Va.x
Cb = Fb + Vb.x
Replacing the fixed and variables values for eahc alternatives:
Ca = 100,000 + 13,000x
Cb = 300,000 + 8,000x
By equalling the cost:
Ca = Cb
100,000 + 13,000*x = 300,000 + 8,000*x
13,000x -8,000x = 300,000 - 100,000
5,000x = 200,000
x = 200,000 / 5,000 = 40
The cost functions will be equal for a 40 volume of items.
Social factors exert the broadest and deepest influence over a person’s consumer behavior false (culture)
Culture :
A person’s culture is represented by a large group of people with a similar heritage. Culture exerts a strong influence on a person’s needs and wants because it is through culture that we learn how to live, what to value, and how to conduct ourselves in society. The American culture, which is a subset of the Western (European) culture, will be the primary focus of this discussion, although other societies in other parts of the world have their own cultures with accompanying traditions and values.
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As long as the marginal benefits are higher than the marginal costs you are better off continuing the activity.
Consider the example of eating pizza. Each slice of pizza gives you happiness and helps fill you up (marginal benefit), but each slice also has lots of calories and fat (marginal cost). As long as you are still hungry and getting enjoyment from eating, you should keep eating. But once you reach the point where you are too full then you should stop, because the costs now outweigh the benefits.