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Among apc and mpc whose can …

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Among apc and mpc whose can be zero and why

    • Posted by Keshav Duggal 5 years, 4 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Yogita Ingle 5 years, 4 months ago

    APC can be zero only when consumption becomes zero. However, consumption is never zero at any level of income. Even at zero level of national income, there is autonomous consumption (c).
    If entire additional income is saved, i.e. AC = 0, then MPC = 0. In normal situations, value of MPC varies between 0 and 1.

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