Difference between APC and MPC

Differentiate between APC and MPC. The value of which of them can be greater than another and when?

Answer:

APC is the average consumption stage of people. Which is equivalent to = APC = C/Y.
MPC is the addition in consumption due to rise in income that is, MPC = ΔC / ΔY.
APC can be greater than one whenever consumption is more than Income.

View Complete Question

Related Questions in Macroeconomics

Q : What are the strength and weakness What

What are the strength and weakness of using per capital national income? give explained answer for query

Q : Internet technology in airline

Speculate regarding the behavior which could result from Internet technology in airline transactions and propose 2 or more strategies to deal with them.

Q : Public debt How does an internally held

How does an internally held public debt differ from an externally held public debt?

Q : What is long run supply curve Please

Please brief the knowledge what is long run supply?

Q : Supply law and it's factors State the

State the Law of supply and explain the factors that affecting supply of commodity

Q : Rates of addiction and existence in a

Harsher punishments for drug dealers than for addicts can’t be blamed for higher: (1) rates of police corruption because main dealers can present big bribes. (2) rates of street crime by addicts. (3) profits reaped by successful pushers who are uncaught. (4) rat

Q : Business fixed investment-Inventory

Describe the following terms: (i) Business fixed investment (ii) Inventory Investment (iii) Residential construction Investment (iv) Public Investment.

Q : Physical quality of life index DISCUSS

DISCUSS the experience of high GNP countries and low GNP with regard to PQLI.

Q : Problem on full employment level of

What happens when AD > AS past to full employment level of employment?

Q : Problem on tax system In the figure

In the figure shown below, line T0 depicts a tax system which is: (1) Progressive. (2) Regressive. (3) Proportional. (4) Unbiased. (5) Recessive. 386</span></p>
</div>

</li>

</td>
</tr>
</table>

</ul>

</div>
</div>
<div class=

Discover Q & A

Leading Solution Library

Avail More Than 1422280 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1924839
Asked

3,689

Active Tutors

1422280

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment