In the above figure, when this monopolistically competitive firm produces its profit-maximizing output, it sets a per-unit price of

The consumer price index is the

A) average of the prices of new final goods and services produced in the economy over a period of time. B) cost of a market basket of goods and services typically consumed in the base year. C) cost of a market basket of goods and services typically consumed in the current period. D) average of the prices of the goods and services purchased by a typical urban family of four.

Which of the following is the largest single component of the market basket used to compute the consumer price index (CPI)?

A. food and beverages B. housing C. transportation D. medical care