A company is considering two suppliers for the purchase of a part needed for manufacturing. Particulars are as follows: SUPPLIER A: Fixed Costs = $9,000 / year Variable Cost / Unit = $2
SUPPLIER B: Fixed Costs = $3,000 / year Variable Cost / Unit = $5

Refer to the information above. For an annual volume of 1,800 units, which supplier should be chosen?

a. Supplier A
b. Supplier B
c. Either Supplier A or Supplier B, because costs are the same for either option at 3,000 units
d. Can't be determined with information given

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; buying the bill at a discount from the face value to be received at maturity;