Explanation The marginal propensity to consume is the proportion of the increased income used for the consumption of goods and services by the consumer. Thus, the percentage of the income spent for consumption out of the increased income is the MPC. The marginal propensity to save is the proportion of the increased income used for savings. Option (a): The households have two ways of spending the money. They could either use the money for consumption or save the money. Thus, the consumption part is denoted by MPC and the savings part is denoted by MPS. This means that the aggregate of the MPC and MPS will be 1. This means that option 'a' is the correct answer. Option (b): The consumption and the savings are the two different methods of spending by the households. Thus, the aggregation of the two will be always one and not zero which means the option 'b' is not the correct answer...

The sum of MPC and MPS.

Economics For Today

10th Edition

ISBN: 9781337613040

Author: Tucker

Publisher: Cengage Learning

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Chapter 18, Problem 9SQ

To determine

The sum of MPC and MPS.

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Only human experts solved it. Direction: Do a total of 5 of this, instruction and the topic is provided in the picture. Strictly write this in bond paper. NOTE: strictly use nautical almanac. This is about maritime navigation.
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Use the following table to work Problems 5 to 9. Minnie's Mineral Springs, a single-price monopoly, faces the market demand schedule: Price Quantity demanded (dollars per bottle) 10 8 (bottles per hour) 0 1 6 2 4 3 2 4 0 5 5. a. Calculate Minnie's total revenue schedule. b. Calculate its marginal revenue schedule. 6. a. Draw a graph of the market demand curve and Minnie's marginal revenue curve. b. Why is Minnie's marginal revenue less than the price? 7. a. At what price is Minnie's total revenue maxi- mized? b. Over what range of prices is the demand for water from Minnie's Mineral Springs elastic? 8. Why will Minnie not produce a quantity at which the market demand for water is inelastic?
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The Firm's Output Decision (Study Plan 12.2) Use the following table to work Problems 4 to 6. Pat's Pizza Kitchen is a price taker. Its costs are Output (pizzas per hour) Total cost (dollars per hour) 0 10 1 21 2 30 3 41 4 54 5 69 4. Calculate Pat's profit-maximizing output and economic profit if the market price is (i) $14 a pizza. (ii) $12 a pizza. (iii) $10 a pizza. 5. What is Pat's shutdown point and what is Pat's economic profit if it shuts down temporarily? 6. Derive Pat's supply curve.
Use the following table to work Problems 27 and 28. ProPainters hires students at $250 a week to paint houses. It leases equipment at $500 a week. The table sets out its total product schedule. Labor (students) 1 Output (houses painted per week) 2 23 5 3 9 4 12 5 14 6 15 27. If ProPainters paints 12 houses a week, calculate its total cost, average total cost, and marginal cost. At what output is average total cost a minimum? 28. Explain why the gap between ProPainters' total cost and total variable cost is the same no matter how many houses are painted.
Use the following table to work Problems 17 to 20. The table shows the production function of Jackie's Canoe Rides. Labor Output (rides per day) (workers per day) Plant 1 Plant 2 Plant 3 Plant 4 10 20 40 55 65 20 40 60 75 85 30 65 75 90 100 40 75 85 100 110 Canoes 10 20 30 40 Jackie's pays $100 a day for each canoe it rents and $50 a day for each canoe operator it hires. 19. a. On Jackie's LRAC curve, what is the average cost of producing 40, 75, and 85 rides a week? b. What is Jackie's minimum efficient scale?

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