The Consumption Function Used in the Textbook Is Based on a Number

question 95

Multiple Choice

The consumption function used in the textbook is based on a number of assumptions.Given these assumptions,which of the following statements is true?

• A)Below a certain level of income,APC > 1 and MPC < 0.
• B)The MPC and APC are always less than unity.
• C)As income rises,the MPC falls and the APC rises.
• D)The MPC is greater than zero and less than one,and the APC falls as income rises.
• E)The APC is greater than zero and less than one,and the MPC falls as income rises.

Comprehend the cost approach to pricing and its implications for ethical pricing strategies.

Recognize fair treatment of suppliers in competitive bidding situations.

Understand the concept and calculations involved in cash discounts and their mutual benefits for buyers and sellers.

Grasp the significance of performance bonds in ensuring compliance with contract specifications.