Unformatted text preview: that is to say: d A ( x ) d x = M ( x ) x A ( x ) x . Now we are ready to derive the results stated in class. (1) If the average is increasing, d A ( x ) d x > 0, i.e., M ( x ) x > A ( x ) x , or M ( x ) > A ( x ) — the marginal is greater than the average. (2) If the average is falling, d A ( x ) d x < 0, i.e., M ( x ) x < A ( x ) x , or M ( x ) < A ( x ) — the marginal is less than the average. (3) When the average is at a maximum (or a minimum), d A ( x ) d x = 0. Thus M ( x ) = A ( x ) — the marginal equals the average. In other words, the marginal cuts the average at its maximum (or minimum) point....
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 Summer '07
 Dr.ShomuBanerjee
 Microeconomics, Calculus, Shomu Banerjee

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