Introduction:
In economics, two important concepts are Marginal Propensity to Consume (MPC) and Average Propensity to Consume (APC). Both of these concepts are used to analyze consumer behavior and consumption patterns. While they are related, they have distinct differences that should be understood.

Distinguishing between MPC and APC:

Marginal Propensity to Consume (MPC):
MPC refers to the proportion of an additional unit of income that a consumer spends on consumption. It measures the change in consumption resulting from a change in income. Here are some key points about MPC:

1. Definition: MPC is the ratio of the change in consumption to the change in income.
2. Range: MPC can range from 0 to 1, where 0 indicates that all additional income is saved and not spent on consumption, while 1 indicates that all additional income is spent on consumption.
3. Interpretation: A higher MPC indicates that consumers are more likely to spend a larger portion of their income on consumption, while a lower MPC indicates a higher propensity to save.

Average Propensity to Consume (APC):
APC, on the other hand, refers to the proportion of total income that a consumer spends on consumption. It measures the average consumption expenditure per unit of income. Here are some key points about APC:

1. Definition: APC is the ratio of total consumption expenditure to total income.
2. Range: APC can also range from 0 to 1, where 0 indicates that no income is spent on consumption, while 1 indicates that all income is spent on consumption.
3. Interpretation: A higher APC indicates that consumers spend a larger proportion of their income on consumption, while a lower APC indicates a higher propensity to save.

Comparing MPC and APC:
Now, let's compare MPC and APC to understand their differences:

1. Calculation: MPC is calculated by dividing the change in consumption by the change in income, while APC is calculated by dividing total consumption by total income.
2. Relationship: MPC and APC are related by the following equation: APC + MPS (Marginal Propensity to Save) = 1. This equation highlights the inverse relationship between the two. As MPC increases, MPS decreases, and vice versa.
3. Value Greater than One: It is possible for the value of APC to be greater than one, but the value of MPC cannot exceed one. This is because APC measures the proportion of income spent on consumption, and if consumers are spending all their income and more on consumption, APC can exceed one. However, MPC represents the change in consumption resulting from a change in income, and it cannot exceed one as it measures the proportion of additional income spent on consumption.

Conclusion:
In summary, MPC and APC are important concepts in economics that help understand consumer behavior and consumption patterns. While MPC measures the change in consumption resulting from a change in income, APC measures the proportion of income spent on consumption. While APC can exceed one if consumers are spending more than their income on consumption, the value of MPC cannot exceed one as it represents the proportion of additional income spent on consumption.