Minimum efficient scale is defined as the level of output at which the short-run average total cost stops decreasing

Why does the substitution bias cause the consumer price index to overstate inflation and the cost of living? Why does the increase in quality bias cause the consumer price index to overstate inflation and the cost of living?

What will be an ideal response?

If M is $400, P is $4, and Q is 300, then V must be:

A. 1.33. B. 3. C. 5.33. D. 100.