12 Explain in 5 lines why a marginal magnitude is equal to t
12) Explain in 5 lines why a marginal magnitude is equal to the corresponding average magnitude when this average magnitude is neither rising nor falling. is neither rising nor 2
Solution
Take an example suppose one unit is produced, average price is 100 and marginal price is 100. If marginal price rise to 110 for 2nd unit, Average price=100+110/2=105.But if marginal price of 2nd unit is 100.Then average price=100+100/2=100.if marginal price is 90,average price =100+90/2=95.so when average price is neither rising or falling marginal value is equal to average value
