If MC Is Rising Then ATC Must Be

question 7

Multiple Choice

If MC is rising then ATC must be

• A)rising.
• B)falling.
• C)above MC.
• D)below MC.
• E)none of the above

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Definitions:

Disposable Income

Disposable income for households after accounting for income taxes, meant for spending and saving.

Marginal Propensity

The ratio of change in an economic variable, such as consumption or saving, to a change in another variable, like income.

Disposable Income

The net income available to individuals or households after taxes have been deducted, available for spending, saving, or investing.

Consumption

The act of using goods and services by households, contributing to the overall demand in an economy.