The Skulls, a Student Social Organization, Has Two Different Locations

question 46

Multiple Choice

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows

What would be total annual costs for either location at the point of indifference?

• A)$13,000
• B)$13,350
• C)$9,000
• D)$17,000
• E)$19,200

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Definitions:

Thanatos

In Freudian psychology, a concept representing the death drive or instinct, which coexists with the life instinct (Eros) and drives aggressive and destructive behavior.

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Self-Hypnotic Suggestion

A technique of self-induction to reach a state of heightened suggestibility for personal improvement or therapeutic purposes.

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A form of psychosis triggered by the abuse of drugs or alcohol, which can lead to hallucinations, delusions, and disordered thinking.