The Following Table Lists the Basket of Goods in the Astro

question 101

Multiple Choice

The following table lists the basket of goods in the Astro Price Index (Assume 2008 is the base year.)
$\begin{array}{|l|c|c|c|c|c|c|} \hline & \begin{array}{c}2008 \\\text { Quantity }\end{array} & \begin{array}{c}2008 \\\text { Price }\end{array} & \begin{array}{c}2009 \\\text { Quantity }\end{array} & \begin{array}{c}2009 \\\text { Price }\end{array} & \begin{array}{c}2010 \\\text { Quantity }\end{array} & \begin{array}{c}2010 \\\text { Price }\end{array} \\\hline \text { Sunglasses } & 8 & \$ 9.00 & 10 & \$ 11.00 & 7 & \$ 10.00 \\\hline \text { Toothpaste } & 15 & 3.00 & 18 & 4.00 & 15 & 4.00 \\\hline \text { Ferrets } & 6 & 12.00 & 4 & 15.00 & 9 & 18.00\\\hline \end{array}$
Table 12.2
-Using the information in Table 12.2, the Astro Price Index for 2009 is

• A)87.
• B)99.
• C)126.
• D)238.

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Definitions:

MR

Marginal Revenue, the additional income that is gained from selling one more unit of a good or service.

Purely Competitive Seller

A seller operating in a market where there are many buyers and sellers, no barriers to entry, and products are homogenous, leading to perfect competition.

Total Fixed Cost

The sum of all costs that do not change with the level of output, such as rent, salaries, and insurance premiums.

Short Run

A period in which at least one factor of production is fixed, limiting the ability of a business to adjust to changing market conditions fully.