Question

The average-marginal rule states: a. when the marginal magnitude is rising, the average magnitude must also be rising. b. when the marginal magnitude is falling, the average magnitude must also be falling. c. when the marginal magnitude is below the average magnitude, the average magnitude falls. d. when the average magnitude rises, the marginal magnitude falls. e. a and b

Answer 1

Answer:

The correct answer is letter "C": when the marginal magnitude is below the average magnitude, the average magnitude falls.

Explanation:

The average-marginal value is an Arithmetic rule implemented in Economics that states that when the marginal value is above the average value, the average value tends to rise, In case the marginal value is below the average value, the average value tends to fall. The average value remains the same when it is equal to the marginal value.