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Consider the following scenario to understand the relationship between marginal and average values. Suppose Eleanor is a professional basketball player, and her game log for free throws can be summarized in the following table. Fill in the columns with Eleanor's free-throw percentage for each game and her overall free-throw average after each game. Game Game Result Total Game Free-Throw Percentage Average Free-Throw Percentage 1 6/8 6/8 75 75 2/8 8/16 3 2/4 10/20 4 8/10 18/30 5 8/10 26/40

Consider the following scenario to understand the relationship between marginal and average values. Suppose Eleanor is a professional basketball player, and her game log for free throws can be summarized in the following table. Fill in the columns with Eleanor's free-throw percentage for each game and her overall free-throw average after each game. Game Game Result Total Game Free-Throw Percentage Average Free-Throw Percentage 1 6/8 6/8 75 75 2/8 8/16 3 2/4 10/20 4 8/10 18/30 5 8/10 26/40

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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 The relationship between marginal and average costs

 
 
 
 
**3. The Relationship Between Marginal and Average Costs** Consider the following scenario to understand the relationship between marginal and average values. Suppose Eleanor is a professional basketball player, and her game log for free throws can be summarized in the following table. **Table: Free-Throw Performance** Fill in the columns with Eleanor’s free-throw percentage for each game and her overall free-throw average after each game. | Game | Game Result | Total | Game Free-Throw Percentage | Average Free-Throw Percentage | |------|-------------|---------|----------------------------|-------------------------------| | 1 | 6/8 | 6/8 | 75 | 75 | | 2 | 2/8 | 8/16 | | | | 3 | 2/4 | 10/20 | | | | 4 | 8/10 | 18/30 | | | | 5 | 8/10 | 26/40 | | | - **Instructions**: On the following graph, use the orange points (square symbol) to plot Eleanor’s free-throw percentage for each game individually, and use the green points (triangle symbol) to plot her overall average free-throw percentage after each game. **Note**: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. The exercise involves calculating and plotting the game free-throw percentage and average free-throw percentage to visualize trends and understand the relationship between marginal performance and averages.
Transcribed Image Text:**3. The Relationship Between Marginal and Average Costs** Consider the following scenario to understand the relationship between marginal and average values. Suppose Eleanor is a professional basketball player, and her game log for free throws can be summarized in the following table. **Table: Free-Throw Performance** Fill in the columns with Eleanor’s free-throw percentage for each game and her overall free-throw average after each game. | Game | Game Result | Total | Game Free-Throw Percentage | Average Free-Throw Percentage | |------|-------------|---------|----------------------------|-------------------------------| | 1 | 6/8 | 6/8 | 75 | 75 | | 2 | 2/8 | 8/16 | | | | 3 | 2/4 | 10/20 | | | | 4 | 8/10 | 18/30 | | | | 5 | 8/10 | 26/40 | | | - **Instructions**: On the following graph, use the orange points (square symbol) to plot Eleanor’s free-throw percentage for each game individually, and use the green points (triangle symbol) to plot her overall average free-throw percentage after each game. **Note**: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. The exercise involves calculating and plotting the game free-throw percentage and average free-throw percentage to visualize trends and understand the relationship between marginal performance and averages.
**Graph Description** The graph represents the free-throw percentage plotted against games. - **X-axis**: Labeled "Game," ranging from 0 to 5. - **Y-axis**: Labeled "Free-Throw Percentage," ranging from 0 to 100. - **Legend**: - Orange squares represent "Game Free-Throw Percentage." - Green triangles represent "Average Free-Throw Percentage." **Text Explanation** You can think of the result in any one game as being Eleanor’s marginal free-throw percentage. Based on your previous answer, you can deduce that when Eleanor’s marginal free-throw percentage is above the average, the average must be _______▼. You can now apply this analysis to production costs. For a U-shaped average total cost (ATC) curve, when the marginal cost curve is below the average total cost curve, the average total cost must be _______▼. Also, when the marginal cost curve is above the average total cost curve, the average total cost must be _______▼. Therefore, the marginal cost curve intersects the average total cost curve ___________________▼.
Transcribed Image Text:**Graph Description** The graph represents the free-throw percentage plotted against games. - **X-axis**: Labeled "Game," ranging from 0 to 5. - **Y-axis**: Labeled "Free-Throw Percentage," ranging from 0 to 100. - **Legend**: - Orange squares represent "Game Free-Throw Percentage." - Green triangles represent "Average Free-Throw Percentage." **Text Explanation** You can think of the result in any one game as being Eleanor’s marginal free-throw percentage. Based on your previous answer, you can deduce that when Eleanor’s marginal free-throw percentage is above the average, the average must be _______▼. You can now apply this analysis to production costs. For a U-shaped average total cost (ATC) curve, when the marginal cost curve is below the average total cost curve, the average total cost must be _______▼. Also, when the marginal cost curve is above the average total cost curve, the average total cost must be _______▼. Therefore, the marginal cost curve intersects the average total cost curve ___________________▼.
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