Answered: If MPL = 2.5 when L = 400, then which…

If MPL = 2.5 when L = 400, then which of the following statements is true about APL: Select one: a. APL is at a maximum b. APL is decreasing c. APL is equal to MPL d. APL is increasing

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 11E

See similar textbooks

Related questions

Q: 1. Consumption and saving definitions Suppose Karen gets a sales bonus at her place of work that…

A: Given Information- The disposable income (Yd) of the consumer is equal to $600. Out of which…

Q: Intertemporal budget constraint. Budget line 1: Y1 = $900. Y2 = $600. The interest rate is 12…

A: Utility refers to the amount of satisfaction consumers' get from the consumption of goods and…

Q: Find consumption if income is $660 and APC is 0.67

A: The data presented in the question above is:- Income = $660 Average propensity to consume = 0.67…

Q: Seung's utility function is given by U - C^(1/2), where C is consumption and C^(1/2) is the square…

A: The expected utility of any individual is given by: Expected Utility = (probability of loss)(Utility…

Q: If the price of good 1 is $2/unit, the price of good 2 is $2/unit, and income is $102... What is…

A: Price of good1 = $2/unitPrice of good2 = $2/unit Income = $102

Q: In year one, Adam earns $1,000 and saves $100. In year 2, Adam gets a $500 raise so that he earns a…

A: MPC or marginal propensity to consume is the change in consumption of a person due to change in his…

Q: 3) Marco has $100 worth of grain in period 1 but gets no grain in period 2. Marco has two choices.…

A: Given information: In Period 1 - $100 grain In Period 2 - No grain Macro has 2 choices: 1) Grain not…

Q: Quantity of Potato Chips E Quantity of Diet Coke Refer to the figure. What point does NOT represent…

A: The graph illustrates a budget line representing the maximum combinations of Potato Chips and Diet…

Q: Example: U(X,Y) = (XY)-5, Px =2, Px = 1, M = 10 • What will be the consumer's optimal consumption? ●

A: At Optimal bundle, slope of indifference curve given by ratio of marginal utilities, is equal to…

Q: The vending machine in Katherine's office building offers cans of pop and candies. Katherine's…

A: Answer: Given, Utility function: U=3PC Price of P PP=$1Price of candy PC=$0.5Total income…

Q: The value of MPS is 0.87 Find the value of MPC

A: # We know that the sum of MPS and MPC is 1 MPS + MPC = 1

Q: DEFINE Limit of consumption options

A: Democratic government is a type of government that is based on mixed economy. it has been seen that…

Q: Oliver gets an allowance of $100 this week and $112 next week. Let c₁ and c₂ be his consumption…

A: The combination of two goods which the consumer can buy from his given income is called budget…

Q: Sales are a function of advertising in newspapers and magazines (X, Y).…

A: Sales which is a function of advertising in newspapers and magazines (X, Y) is given as- S = XY2…

Q: Saving is setting aside money you don't spend now for emergencies or for a future purchase. In an…

A: Savings function is a mathematical representation of the relationship between the disposable income…

Q: Solve for the MPK, assuming that the MPL in the production of smartphones is 50 per smartphone per…

A: with the given information, MPL = 50 MRTS = 1/4

Q: It takes Richard two hours round-trip to drive from where he lives in Fayetteville to Raleigh. He…

A: The cost of car is more in Fayetteville. Also, the cost of a motorcycle is more in Fayetteville. In…

Q: we consider an agent Ann who consumes goods and y and has a utility U(x, y) = x²y. In these…

A: Expenditure minimization is a concept pertaining to microeconomics that involves finding the least…

Q: Complete the following table and illustrate by graph following variables (TFC. TVC. TC. MC) TFC…

Q: Please note that the bold red and blue lines below demonstrate the quantity versus price…

A: Macroeconomic monitoring will continue to be important since it influences the economy's eventual…

Q: If the MPC is 0.31 find the value of the MPS

Q: Find consumption if income is $300 and APC is 0.43

A: The information being given is:- Income = $300 Average propensity to consume = 0.43 We have to…

Q: 3. Suppose that you are interested in answering the question of how consumption reacts to tax…

A: When there is a tax increase it would lead to the less consumption, as the people have less money to…

Q: If the value of MPC is 0.25 Find the value of MPS.

A: Given data: MPC is 0.25

Q: Exercise 4. You are a manager at a certain factory that designs small gadgets. The factory has been…

A: Decision trees provide a visual representation of the problem at hand allowing an individual to…

Q: 1. There are three consumers of a public good whose demands are: a) P1= 50 - Q b) P2=75-Q c) P3=…

A: Introduction Public goods are the types of goods that are non-excludable as well as non-rival in…

Q: B What is the intertemporal budget constraint? Hint: Get s in the 2nd con- straint, plug it in the…

A: We have to equate savings from period 1 to period 2

Q: Suppose that there are T periods to maximize over. Show that the intertemporal budget constraint is…

A: The consumers utility depends on consumption of a composite good over two time periods. U = C1C2. C1…

Q: What happens to the mulitiplier as the MPC falls

A: The relationship between proportionate change in aggregate spending and proportionate change in…

Q: George enjoys bananas and leisure. He sleeps 8 hours per day. Of the remaining 16 hours, for each…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Michelle is a saver, and consumption in period 1 is a normal good. If there is an increase in the…

A: Consumer spending is thought to be affected by higher interest rates by both substitution and income…

Q: if the value of MPC is 0.29 Find the value of MPS

A: Generally in the given question MPC is given as = 0.29 So the value of MPS is needed = ?

Q: Suppose a consumer has $1500 in the current time period and $1100 in the future time period. Suppose…

A: Given information 2 period income Y1=1500--- income in the current period Y2=1100--- income in the…

Question

(ECONOMICS)

If MP_L = 2.5 when L = 400, then which of the following statements is true about AP_L:

Select one:

a. AP_L is at a maximum

b. AP_L is decreasing

c. AP_L is equal to MPL

d. AP_L is increasing

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Typed plz Please maintain accuracy and quality In your Answer take care of plagrisiam I wl upvote for sure
Find out (i) if MPC is .75, what will be the MPS? (ii) if APS is .3, what will be the APC?
Prove that the multiplier is equal to 1/(1-mpc)
G
Q.1.6 Given the import function, Z = 300 + 2/3Y, which of the following statements iscorrect?(2)(a) The marginal propensity to save is 1/3;(b) The induced component is 300;(c) 2/3 is the proportion of any income spent on imports;(d) None of the statements is correct.
What happens to the mulitiplier as the MPC falls
If Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to O save is 3/5. O consume is 1/2. O consume is 3/5. O consume is 2/5.
Let's incorporate the labor-leisure trade-off and capital income taxes in the two-period model. Let c₁, c₂ be consumption in two periods, I the number of hours worked, Te Te the proportional taxes on consumption in 2 periods, s the saving rate, w the wage rate, b pension in the 2nd period, and 7, the tax on savings (capital income tax). The household's maximization problem in this case is: given by maxe₁,e2,8,1-1 log(c₁) + log (1-1)+5log (c₂) such that (1+T₂) C₁+8 = (1-7)wl and (1+T₂)C₂ = [1+r(1-Ts)]s+b, where measures how the household values leisure vis-a-vis consumption.
Please give me correct answer with calculation otherwise i give multiple downvote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Find the value of MPC when multiplier is stated as 0.97
10
Refer to the consumption function graph above. How much is the MPC at the disposable income of $200? Group of answer choices 0.75 cannot be determined -0.35 -0.3 -0.25 Expandius 600 500 430 400 115 330 300 240 230 200 100 0 100 200 000 G 400 500 600 4ping Line Dance