The average propensity to consume is the fraction of total disposable income that households spend on consumption (as opposed to saving for example) whereas marginal propensity to consume is the additional consumption that results from an additional dollar of disposable income.
average propensity to consume is the fraction of the total amount of disposable income that households spend on consumption whereas marginal propensity to consume is the amount that consumption increases for every additional dollar of disposable income.
relation ship between average cost and marginal cost
marginal cost
The cost curves best tells us the relationship between the marginal cost and average total cost. The average fixed cost (AFC) curve will decline as additional units are produced, and continue to decline.
we can subtract the AVC and we will get the MC
average propensity to consume is the fraction of the total amount of disposable income that households spend on consumption whereas marginal propensity to consume is the amount that consumption increases for every additional dollar of disposable income.
relation ship between average cost and marginal cost
marginal cost
Average Product = (Total Product) / (Labor) Marginal Product(2) = (Total Product)(2) - (Total Product)(1)
Marginal product is any input in the production process is the increase in the quantity of output obtained from on additional unit of the input. Average product is the output produced when one more unit of the variable factor is employed The relationship is state as: If labour's marginal product is exceed its average product that means labour's average product will be rising. Labour's average product will be falling. If labour's marginal product is less than its average product. If labour's marginal product is equal its average product and the average product will reach the minimum value at the point.
The cost curves best tells us the relationship between the marginal cost and average total cost. The average fixed cost (AFC) curve will decline as additional units are produced, and continue to decline.
we can subtract the AVC and we will get the MC
Multilplier is the ratio by which a given increase in investment brings about an increase in the national income. The extent of the increase in income ranges from 1 to infinity depending on the mariginal propensity to consume (MPC) and marginal propensity to save (MPS). Multiplier is symbolised by the aphabet "K" and its value is calculated as under:1 1K = ------------------------- = -----------------------1-MPC MPSIf MPC =1, K = infinity and if MPC = 0, K = 1 and in between there are numerous ratios, depending on the data in a question.Multiplier can also be defined as the reciprocal of marginal propensity to save because K = 1/MPS
Total average pertains to annual revenue. While marginal revenue is equivalent to quarterly profits. The relationship between the two is only that one is the dividend of the other.
APCMPCIt refers to the ratio of absolute consumption absolute income at a particular point of time.It refers to the ratio of change in consumption to change in income; MPC is the rate of change in APC.APC is useful in long periodMPC is useful in short-periodIn the long period APC=MPC.In the short period there is no change in MPC and MPC
what is the relationship between marginal physical product and marginal cos
1 in a million