In the consumption function C = a + c(Y - T), the "marginal propensity to consume" appears as

A) a.
B) c.
C) cY.
D) -cT.
E) c(Y - T).

B

Economics

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A monopolistically competitive firm:

A. sells products that are perfect substitutes for its competitors' products, so must compete on the basis of location. B. will be more successful the more similar its output is to its competitors' output. C. sometimes distinguishes its output from that of its competitors by locating in a more convenient place. D. sells products that are close substitutes for its competitors' products, so will locate as far away from its competitors as possible.

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