If the CPI Basket Costs $35 in the Base Period

question 151

Multiple Choice

If the CPI basket costs $35 in the base period but costs $42, what is the CPI in the next period?

• A) $42
• B) 83.3
• C) 120
• D) 20 percent

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Definitions:

Marginal Revenue

The extra revenue gained by selling an additional unit of a product or service.

Total Revenue

The total amount of money a company receives from sales of its products or services, before any expenses are subtracted.

Total Revenue

The total income generated by a firm from its sales of goods or services, calculated as the unit price times the quantity sold.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity of output produced.