-Use the Above Table

question 213

Multiple Choice

-Use the above table. Which of the following is true if real disposable income is $150?

• A) APC is less than MPC.
• B) APC = 0.8.
• C) APS = 0.2.
• D) APS is less than MPS.

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Definitions:

Production Isoquant

A curve that represents all combinations of inputs that produce the same level of output, used in the analysis of production technology.

Marginal Products

The additional output that is produced by using one more unit of a particular input, holding other inputs constant, critical in the analysis of production efficiency.

Profitability

A measure of the efficiency with which a company or a business utilizes its resources to generate profits.

Production Set

A set of all possible combinations of inputs and outputs that a firm can produce taking into account its technology.