If the MPS Is 0

question 194

Multiple Choice

If the MPS is 0.25 and the MPC is 0.6, then the MPM

• A) is 0.85.
• B) is 0.35.
• C) is 0.15.
• D) cannot be determined from the given information.

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Definitions:

Total Cost

The entire cost of production for a business, including both fixed (unchanging with output) and variable (changing with output) expenses.

Long-Run

A period in economics during which all factors of production and costs are variable, allowing all inputs to be adjusted to change the level of output.

Maximize Profits

The strategy or process aimed at making the highest possible profit from business operations.

Total Cost

The entire cost of production, including both fixed and variable costs.