Question

Can the value of APC be less than zero?

Why can value of MPC be not greater than one? ​

Answer 1

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Yes, APC can be greater than one. This generally happens in such situations where the level of income is so low that consumption is greater than income. However, MPC cannot be greater than one.


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Answer 2

hey!.

_____.

answer:-

________

No,

----->>because even at the zero level of income.we will consume something.

example:- autonomous consumption.

---->>>>It is so because law of consumption states that when income increases, consumption also increases but at a lesser rate.

----->>>>So, increase in consumption is always less than increase in income.

example:-

__________

----->>>MPC = ΔC /ΔY is always less than one...

hope help u!!

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