Which of the following statements is true for any marginal and average?
A) When the marginal is greater than the average, the average increases.
B) When the marginal is less than the average, the average increases.
C) When the marginal is rising, the average is increasing.
D) When the marginal is equal to the average, the average decreases.

Question

Quizplus · Accepted Answer

When the marginal is greater than the average, this means that the additional unit being produced or consumed is more efficient than the overall production or consumption. And since the efficient unit is contributing more to the overall outcome, the average increases.

Which of the Following Statements Is True for Any Marginal