Suppose the Market Basket Consists of 100X,200Y,and 300Z

question 82

Multiple Choice

Suppose the market basket consists of 100X,200Y,and 300Z.Current-year prices are $5 for each unit of X,$2 for each unit of Y,and $3 for each unit of Z.Base-year prices are $2 for each unit of X,Y,and Z.What is the approximate CPI in the current year?

• A) 15
• B) 70.20
• C) 1,200
• D) 150

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Definitions:

Total Revenue

The total income generated from the sale of goods or services.

Output Level

The total quantity of goods or services produced in a given period of time.

Sole Producer

A market situation in which only one company or entity provides a particular product or service, often leading to a monopoly.

Marginal Cost

The investment needed to manufacture an additional unit of a product or service.