Consider the following scenario to understand the relationship between marginal and average values. Suppose Paolo is a professional basketball player, and his game log for free throws can be summarized in the following table. Fl in the columns with Paolo's free-throw percentage for each game and his overall free-throw average after each game. Game Game Result Total Game Free-Throw Percentage Average Free-Throw Percentage 6/8 6/8 75 75 2 2/8 8/16 2/4 10/20 8/10 18/30 8/10 26/40 On the following graph, use the orange points (square symbol) to plot Paolo's free-throw percentage for each game individually, and use the green points (triangle symbol) to plot his overall average free-throw percentage after each game.

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Chapter1: Making Economics Decisions
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Question
100
Game Free-Throw Percentage
80
70
Average Free Trow Percentage
60
50
40
20
10
GAME
You can think of the result in any one game as being Paolo's marginal free-throw percentage. Based on your previous answer, you can deduce that
when Paolo's marginal free-throw percentage is below the average, the average must be falling
You can now apply this analysis to production costs. For a U-shaped average total cost curve, when the marginal cost curve is below the average total
cost curve, the average total cost must be_rising v. Also, when the marginal cost curve is above the average total cost curve, the average total
cost must be rising v . Therefore, the marginal cost curve intersects the average total cost curve
at its maximum
FREE-THROW PERCENTAGE
Transcribed Image Text:100 Game Free-Throw Percentage 80 70 Average Free Trow Percentage 60 50 40 20 10 GAME You can think of the result in any one game as being Paolo's marginal free-throw percentage. Based on your previous answer, you can deduce that when Paolo's marginal free-throw percentage is below the average, the average must be falling You can now apply this analysis to production costs. For a U-shaped average total cost curve, when the marginal cost curve is below the average total cost curve, the average total cost must be_rising v. Also, when the marginal cost curve is above the average total cost curve, the average total cost must be rising v . Therefore, the marginal cost curve intersects the average total cost curve at its maximum FREE-THROW PERCENTAGE
Consider the fallowing scenario to understand the relationship between marginal and average values. Suppose Paolo is a professional basketball
player, and his game log for free throws can be summarized in the following table.
Fill in the columns with Paolo's free-throw percentage for each game and his 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
2/4
10/20
8/10
18/30
8/10
26/40
On the folowing graph, use the orange points (square symbol) to plot Paolo's free-throw percentage for each game individually, and use the green
points (triangle symbol) to plot his overall average free-throw percentage after each game.
Note: Plot your points in the order in which you would like them oconnected. Line segments will connect the points automatically.
Transcribed Image Text:Consider the fallowing scenario to understand the relationship between marginal and average values. Suppose Paolo is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns with Paolo's free-throw percentage for each game and his 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 2/4 10/20 8/10 18/30 8/10 26/40 On the folowing graph, use the orange points (square symbol) to plot Paolo's free-throw percentage for each game individually, and use the green points (triangle symbol) to plot his overall average free-throw percentage after each game. Note: Plot your points in the order in which you would like them oconnected. Line segments will connect the points automatically.
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