If the Consumption Function Is Defined as C = 5,500

question 193

Multiple Choice

If the consumption function is defined as C = 5,500 + 0.9Y, what is the marginal propensity to consume?

• A)0.1
• B)0.9
• C)5.5
• D)6.1
• E)$5,500

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Definitions:

HHI

Herfindahl-Hirschman Index, a measure of market concentration to assess the level of competition among firms.

Herfindahl-Hirschman Index

An economic indicator used to evaluate the level of competition within an industry by measuring the concentration of market share held by the largest firms.

Proposed Merger

A plan or offer for two or more entities to combine their operations, resources, and managerial activities into a single unit.

Industry Concentration

Industry concentration is a measure of the extent to which a small number of firms dominate the total production, sales, or market share in a particular industry, often analyzed through concentration ratios or the Herfindahl-Hirschman Index (HHI).