The CPI measures the average prices paid by __________ for _________.
A. urban consumers; a fixed basket of consumption goods and services
B. urban consumers; the average basket of goods and services they buy
C. all consumers; housing, transportation, and food
D. everyone who earns an income; the necessities of life
Question 2
If the marginal cost of producing a television is constant at 200, then a firm should produce this item
A) as long as the marginal benefit it receives is just equal to or greater than 200.
B) only if the marginal benefit it receives is greater than 200 plus an acceptable profit margin.
C) as long as its marginal cost does not rise.
D) until the marginal benefit it receives reaches zero.
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