value of APC can be infinity or not
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Aggregate of APC and MPC is not equal to infinity as a derived rule. 5) The given statement is true. This is because savings of a consumer can never exceed his income as consumption is always positive. Hence, APC can never be greater than 1.
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Answer: (iii) But the average propensity to consume will be different at different points of the consumption function. For example, at point P, C = OP and Y = 0, so that, APC = C/Y = OP/O = ∞. It means at point P, the APC is infinity (∞).
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