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 2
The above figure shows Katie's consumption possibilities. The relative price of a movie ticket is
A) 1 restaurant meal.
B) 0.25 restaurant meals.
C) 4 restaurant meals.
D) 2 restaurant meals.
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