If the Consumer Price Index Last Year Was 110 and 115

question 125

Multiple Choice

If the Consumer Price Index last year was 110 and 115 this year, the inflation rate is approximately

• A) 4.5 percent.
• B) 5.0 percent.
• C) 10.0 percent.
• D) 15.0 percent.

---

Definitions:

Market Shares

Represents the percentage of an industry's sales that a particular company controls.

Natural Monopoly

A market condition where a single firm can provide a good or service at a lower cost than any potential competitor, often due to economies of scale.

Economies of Scale

Economies of scale occur when increasing the production scale leads to a decrease in the long-term average costs, often due to more efficient use of inputs.

Exclusive Franchise

A legal agreement granting one party the sole right to sell or distribute a company's products or services in a particular market area.