The Relationship Between Average and Marginal Variables Can Be Stated

question 219

Multiple Choice

The relationship between average and marginal variables can be stated as follows: if the marginal is greater than the average,

• A) the average is increasing.
• B) the average is decreasing.
• C) the marginal is increasing.
• D) the marginal is decreasing.
• E) the total is decreasing.

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Definitions:

Entrepreneurs

Individuals who initiate, manage, and take on the risks of a business or enterprise.

Fixed Salary

A consistent set amount of pay received by an employee, typically on a monthly or bi-monthly basis, regardless of hours worked.

Business Risk

The potential for a company to experience losses or fail to achieve its financial goals due to economic conditions, operational issues, or other unforeseen factors.

Economic Profit

The total revenue a firm earns minus both its explicit and implicit costs, representing surplus value created from production.