Use This Information for Swan Company to Answer the Questions

question 5

Multiple Choice

Use this information for Swan Company to answer the questions that follow.

Swan Company produces a product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit, and the desired profit is $20 per unit.
-What is the activity rate for production setup?

• A) $2,500 per setup
• B) $833 per setup
• C) $625 per setup
• D) $400 per setup

Calculate total utility from given data.

Derive marginal utility from changes in total utility.

Understand and calculate consumer surplus.

Recognize the role of price in consumer demand and surplus.

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Definitions:

Antagonistic Muscles

Muscle pairs that work opposite each other; when one muscle contracts, the other relaxes, allowing movement in opposite directions.

CNS

The central nervous system, comprising the brain and the spinal cord.

Integration Center

A part of the nervous system, such as the brain or spinal cord, where information is processed and interpreted to initiate a response.

Reflex Arc

A neural pathway that controls an involuntary, rapid response to a stimulus.