The Table Below Shows Hypothetical Prices for a Particular Anatomy

question 18

Multiple Choice

The table below shows hypothetical prices for a particular anatomy textbook at a university bookstore over several years.
TABLE 2-4
-Refer to Table 2-4.Assume that 2016 is used as the base year,with the index number = 100.The value of the index number in 2012 is

• A)0.818.
• B)1.0.
• C)1.222.
• D)81.8.
• E)122.2.

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Definitions:

Competitive Price-searcher Firm

A business that operates in a market where firms have some degree of control over the prices they charge, often because of product differentiation.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, strict regulations, and established brand loyalty.

Competitive Price-searcher Market

A market structure where firms have some control over the pricing of their products because their products are differentiated, but there is intense competition due to low entry barriers.

Economic Profit

The total revenue of a business minus both explicit and implicit costs.