Question

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. e. c and d

Answer 1

Option A is correct one.

Less than the average magnitude, the average magnitude falls

Step-by-step explanation:

An average and marginal has a relationship that an average increases if the marginal is above it because an average is adding and dividing and if the Average<marginal then the average increases and vice verse

Average product and marginal product, if marginal product is below the average product then the marginal product adds lower than the average product to total product so the average profit decreases and vice versa.