Murphy Company Produces Flash Drives for Computers Which It Sells

question 70

Multiple Choice

Murphy Company produces flash drives for computers which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During April 700 drives were sold. Fixed costs for April were $4 per unit for a total of $2800 for the month. How much does Murphy's operating income increase for each $1000 increase in revenue per month?

• A) $700
• B) $500
• C) $14000
• D) Not enough information to determine the answer.

Comprehend the implications of the First and Second Welfare Theorems in the context of welfare economics.

Understand the impact of homothetic and Cobb-Douglas preferences on consumption allocations.

Recognize how different utility functions affect economic outcomes in a pure exchange economy.

Identify the conditions under which a Pareto optimal allocation is also a competitive equilibrium.

---

Definitions:

Juvenile Offenders

Juvenile offenders are individuals under the age of legal adulthood who commit crimes or delinquent acts, subject to a distinct set of laws and rehabilitation focused justice system.

Life Without Parole

A criminal sentence in which the convicted individual is to spend the remainder of their life in prison without the possibility of parole.

Cruel and Unusual Punishment

A form of penalty that is deemed intolerable because of the agony, distress, or degradation it causes to the individual who endures it.

Gender Recognition Act

Legislation in some jurisdictions that allows individuals to legally change their gender designation on official documents.