Read the two statements and choose the correct option.

I. When TR is rising at a diminishing rate, MR is positive and falling.

II. When MR is falling, AR must be rising.

Explanation

1. 01

   I is true: MR is the slope of TR; a flattening rise means a falling but positive slope.

2. 02

   II is false: with a falling price, MR and AR fall together, MR faster.