Consider the Following Information About Sites A, B, and C

question 18

Short Answer

Consider the following information about sites A, B, and C: $$\begin{array} { l r l } \text { Site } & \text { FC (annual) } & \text { VC (per unit) } \\\hline \text { A } & \$ 100,000 & \$ 10 \\\mathrm {~B} & \$ 120,000 & \$ 8 \\\text { C } & \$ 150,000 & \$ 7\end{array}$$ What are total costs for site B for a quantity of 5,000 units per year?

Recognize the impact of personal decisions on financial planning, including opportunity costs.

Comprehend different financial institutions and their roles in personal finance.

Calculate the impact of interest rates on savings and investments.

Understand the components of financial planning and their importance.

---

Definitions:

Consumption

The act of consuming goods and services either by individuals or society as a whole, central to economic analysis of demand and spending.

Income

The money received, usually on a regular basis, for work or through investments.

Interest Rate

The segment of a loan levied as interest upon the borrower, customarily indicated as an annual proportion of the loan yet to be repaid.

Utility Function

A representation in economics that expresses the preference ordering of various utility levels or consumption bundles by individuals or firms.