The consumer price index (cpi) and the gdp deflator are both price indices, so they both serve as measures of inflation. however, the – uses a smaller basket of goods. the – aims to take into account all final goods and services, whereas the – only includes goods and services sold to –. so, for instance, prices on farm equipment are included in the – but not in the –.

Assume a competitive firm faces a market price of $60, a cost curve of c = 0.003q^3 + 25q + 750, and a marginal cost of curve of: mc = 0.009q^2 + 25.the firm's profit maximizing output level (to the nearest tenth) is , and the profit (to the nearest penny) at this output level is $ will cause the market supply to (shift right/shift left). this will continue until the price is equal to the minimum average cost of $