Table 8.7 -Refer to Table 8.7.Given the Consumption Schedule in the Table

question 166

Multiple Choice

Table 8.7
-Refer to Table 8.7.Given the consumption schedule in the table above, the marginal propensity to save is

• A)0.3.
• B)0.4.
• C)0.5.
• D)0.6.
• E)0.8.

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Definitions:

Marginal Cost Curve

The marginal cost curve graphically represents the cost incurred in producing one additional unit of a good.

Average Fixed Cost

Represents the fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.

Total Cost Curve

A graphical representation showing the total cost incurred by a firm at different levels of output.

Variable Input

An input in the production process that can be adjusted in the short term to change the level of output.