The consumption expenditure $E_c$ of a person with the income $x$. is given by $E_c = 0.0006x^2 + 0.003x$. Find MPC, MPS, APC and APS when the income $x = 200$.

The consumption expenditure Ec of a person with the income x. is given by Ec = 0.0006x² + 0.003x. Find MPC, MP

Question 32 of 36

E_c

Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2026Subjective· 4mImportance★★★★★

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With $E_c = 0.0006x^2 + 0.003x$ : $\text{MPC} = \frac{dE_c}{dx} = 0.0012x + 0.003$ and $\text{APC} = \frac{E_c}{x}$ . At $x = 200$ , $\text{MPC} = 0.243$ , $\text{APC} = 0.123$ , and hence $\text{MPS} = 0.757$ , $\text{APS} = 0.877$ .

Marginal Propensity to Consume (MPC). Differentiate the consumption expenditure:

$\text{MPC} = \frac{dE_c}{dx} = 0.0012x + 0.003$

At $x = 200$ :

$\text{MPC} = 0.0012(200) + 0.003 = 0.24 + 0.003 = 0.243$

Marginal Propensity to Save (MPS). Since income is either consumed or saved,

$\text{MPS} = 1 - \text{MPC} = 1 - 0.243 = 0.757$

Average Propensity to Consume (APC). First find $E_c$ at $x = 200$ :

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2025Set MARCH1 mark
$Q. Define marginal cost.$
›Reveal solutionSolution

Marginal cost is the rate of change of total cost with respect to output: $MC = \dfrac{dC}{dx}$ , i.e. the cost of producing one additional unit.

GSEB Class-12 Statistics, Differentiation (business applications):

Marginal cost is the approximate change in total cost when the level of production is increased by one unit. If the total cost of producing $x$ units is $C = C(x)$ , then marginal cost is the derivative of the total cost function:

$MC = \frac{dC}{dx}$

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CBSE 2024Set MARCH1 markMCQ
$y=x^3+19$
(a) $\pm 3$
(b) $\pm 1$
(c) $\pm 4$
(d) $\pm 2$
›Reveal solutionSolution

For $y=x^3+19$ , the marginal value equals $27$ when $x=\pm 3$ .

The marginal value is the first derivative of the function:

$\frac{dy}{dx}=\frac{d}{dx}\left(x^3+19\right)=3x^2.$

…

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CBSE 2022Set MARCH1 markMCQ
$\eta_d$
(a) $MR = AR = \eta_d$
(b) $\eta_d = \dfrac{AR}{AR - MR}$
(c) $AR = \dfrac{MR}{\eta_d}$
(d) $\eta_d = AR - MR$
›Reveal solutionSolution

From $MR=AR\left(1-\tfrac1{\eta_d}\right)$ , solving for $\eta_d$ yields $\eta_d=\dfrac{AR}{AR-MR}$ .

The standard relationship between marginal revenue $(MR)$ , average revenue $(AR)$ and price elasticity of demand $(\eta_d)$ is

$MR = AR\left(1 - \frac{1}{\eta_d}\right)$

Rearrange to isolate $\eta_d$ :

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Q.The consumption expenditure $E_c$ of a person with the income $x$ . is given by $E_c = 0.0006x^2 + 0.003x$ . Find MPC, MPS, APC and APS when the income $x = 200$ .

Concept understanding — Marginal Cost and Marginal Revenue

Q.The consumption expenditure EcE_cEc​ of a person with the income xxx. is given by Ec=0.0006x2+0.003xE_c = 0.0006x^2 + 0.003xEc​=0.0006x2+0.003x. Find MPC, MPS, APC and APS when the income x=200x = 200x=200.

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Q.The consumption expenditure $E_c$ of a person with the income $x$ . is given by $E_c = 0.0006x^2 + 0.003x$ . Find MPC, MPS, APC and APS when the income $x = 200$ .

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