If an average value is equal to its corresponding marginal value, the average value must be at either a maximum or a minimum.

Question

Quizplus · Accepted Answer

When the marginal value (the change in the total value resulting from a one-unit change in quantity) equals the average value (total value divided by the quantity), it indicates that the average value has stopped increasing or decreasing at that point, suggesting it is at a maximum or minimum.

If an Average Value Is Equal to Its Corresponding Marginal