Autonomous Consumption Is

question 124

Multiple Choice

Autonomous consumption is

• A) the change in consumption that results as a person's (or nation's)income increases or decreases.
• B) that portion of total consumption that is dependent upon the level of income.
• C) the steady increase in the consumption of goods and services that automatically occurs as a person grows from a child to an adult.
• D) that portion of total consumption that is independent of the level of income.

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Definitions:

Average Total Cost

The sum of all production expenses divided by the amount of goods produced.

Perfectly Competitive

A market structure where many firms offer products that are similar and entry into the market is relatively easy.

Market Price

The present cost at which a product or service is available for purchase or sale in a specific market.

Optimal Short-Run Output

The level of production that maximizes profit or minimizes loss in the short term.