The average-marginal rule states that if the marginal magnitude is
A)less than the average magnitude, the average magnitude falls.
B)greater than the average magnitude, the average magnitude falls.
C)rising, the average magnitude is necessarily above it.
D)falling, the average magnitude is necessarily below it.

Question

Quizplus · Accepted Answer

If the marginal magnitude is less than the average magnitude, the average magnitude will decrease. This is because the marginal value pulls the average down when it is below the average.

The Average-Marginal Rule States That If the Marginal Magnitude Is