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Consider the Following Data on the Prices of Three Items,A,B,and

question 15

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Consider the following data on the prices of three items,A,B,and C,from 2000 through 2002. Consider the following data on the prices of three items,A,B,and C,from 2000 through 2002.   If the price of item C in 2002 was 210 instead of 207,which of the following is the unweighted aggregate price index for 2002 for the three items,using 2000 as the base year? A)  98.09 B)  100.45 C)  102.03 D)  101.94 If the price of item C in 2002 was 210 instead of 207,which of the following is the unweighted aggregate price index for 2002 for the three items,using 2000 as the base year?


Definitions:

Long Run

A period in economics during which all factors of production and costs are variable, allowing firms to adjust all inputs.

Deli

A short form for delicatessen, which is a store or counter specializing in prepared foods, sandwiches, and specialty groceries.

Zero Economic Profits

A condition in perfect competition where firms earn just enough revenue to cover their total costs, leading to no supernormal profit in the long term.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for significant brand differentiation and some control over prices.

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