The Slope of the Consumption Function Is

question 91

Multiple Choice

The slope of the consumption function is

• A) equal to the MPC and is equal to 1.
• B) equal to the MPC and is greater than 1.
• C) equal to the MPC and is less than 1.
• D) not equal to the MPC and is less than 1.
• E) not equal to the MPC and is equal to 1.

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Definitions:

Cost And Supply Curves

Graphical representations that show how the cost of producing a good and the quantity supplied vary with quantity produced.

Constant-Cost Industry

An industry in which the costs of production do not change as the industry's output changes.

Increasing-Cost Industry

An industry in which the costs of production increase as output expands, often due to factors like resource depletion or higher input prices.

Increasing-Cost Industry

An industry where the costs of production increase as the industry expands, often due to factors like limited resources or increased prices for inputs.