Make Economics comprehensive

Sunday, May 7, 2017

2.Nature of Data-Total and Marginal

Marginal is net addition to total.Suppose you buy one more note book how much more you have to spend.marginal is the diffrence between two consecutive total values.
Total value can be got by cumulative addition of marginal values.
The data related to marginal value may increase ,may decrease may be constant,may be zero or may be negative.
The Data related with total value behave on the basis of marginal value.

#if marginal value is positive total value will always increase.But the rate of increase depends on the nature of marginal.I mean whether the marginal value is rising ,falling or constant.

If marginal rises total will increase at increasing rate.
If marginal falls total will increase at diminishing rate.
If marginal is constant total will increase at constant rate.
if marginal becomes negative total will start fall down.

No comments:

Post a Comment