Given the data in the table below, what is the short-run profit-maximizing level of output for the perfectly competitive firm?OutputTotal RevenueTotal Cost1$4$228331264161052015

When the cost of the CPI market basket increases from one year to the next, we know that

A) on the average, current prices are less than past year prices. B) the quantities of the goods and services contained in the CPI market basket have increased on the average. C) the prices of the goods and services contained in the CPI market basket have increased on the average. D) on the average, current prices are below base year prices. E) either the quantities of the goods and services contained in the CPI market basket have increased on the average and/or the prices of the goods and services contained in the CPI market basket have increased on the average.

Which of the following is not a limitation that regulators face when they implement average cost pricing?

a. Average cost pricing provides little or no incentive for firms to keep costs down. b. The accurate calculation of a firm's costs is difficult. c. Decisions are political and often influenced by special interests. d. All of the preceding are limitations faced by regulators implementing average cost pricing.