Disposable Income $~~~~~~$ Consumption $\$ 20,000 \quad~~~~~~~~~~~~~~~~~~ \$ 17,000$ -Calculate the APC

question 188

Essay

Disposable Income $~~~~~~$ Consumption
$\$ 20,000 \quad~~~~~~~~~~~~~~~~~~ \$ 17,000$
-Calculate the APC.

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Definitions:

Returns to Scale

The change in output resulting from a proportionate increase in all inputs; the concept explains how output changes with varying levels of input.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, typically resulting in lower per-unit costs with increased production.

Average Cost Curve

The average cost curve is a graphical representation showing how the average cost per unit of output varies with the level of output, typically U-shaped due to economies and diseconomies of scale.

Economies of Scale

Cost benefits that companies achieve because of their large scale of operations, generally resulting in a lower cost per output unit as the scale increases.