5. Marginal versus average effects Consider the nonlinear function shown by the blue curve on the following graph. The grey line is tangent to this curve at point A. Use the grey line (star point) to answer the following question. (Note: You will not be graded on your placement of this line.) > 10 9 8 7 A 6 4 3 2 1 Tangent Line f(x) 0+ + + + + + 0 1 2 3 4 5 6 7 8 9 10 X The marginal effect of X on Y at point A is The average effect of X on Y at point A is True or False: For this graph, the marginal effect decreases as X increases. True False Scratch Line (?)
5. Marginal versus average effects Consider the nonlinear function shown by the blue curve on the following graph. The grey line is tangent to this curve at point A. Use the grey line (star point) to answer the following question. (Note: You will not be graded on your placement of this line.) > 10 9 8 7 A 6 4 3 2 1 Tangent Line f(x) 0+ + + + + + 0 1 2 3 4 5 6 7 8 9 10 X The marginal effect of X on Y at point A is The average effect of X on Y at point A is True or False: For this graph, the marginal effect decreases as X increases. True False Scratch Line (?)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![5. Marginal versus average effects
Consider the nonlinear function shown by the blue curve on the following graph. The grey line is tangent to this curve at point A.
Use the grey line (star point) to answer the following question. (Note: You will not be graded on your placement of this line.)
>
10
9
8
7
A
6
4
3
2
1
Tangent Line
f(x)
0+
+
+
+
+
+
0
1
2
3
4
5
6
7
8
9
10
X
The marginal effect of X on Y at point A is
The average effect of X on Y at point A is
True or False: For this graph, the marginal effect decreases as X increases.
True
False
Scratch Line
(?)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F012262bd-76c5-4242-b2d1-b7bfcde87e50%2F82a77daa-98cb-4773-9256-db09e384c9d4%2F40lp8owd_processed.png&w=3840&q=75)
Transcribed Image Text:5. Marginal versus average effects
Consider the nonlinear function shown by the blue curve on the following graph. The grey line is tangent to this curve at point A.
Use the grey line (star point) to answer the following question. (Note: You will not be graded on your placement of this line.)
>
10
9
8
7
A
6
4
3
2
1
Tangent Line
f(x)
0+
+
+
+
+
+
0
1
2
3
4
5
6
7
8
9
10
X
The marginal effect of X on Y at point A is
The average effect of X on Y at point A is
True or False: For this graph, the marginal effect decreases as X increases.
True
False
Scratch Line
(?)
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