Consider the following scenario to understand the relationship between marginal and average values. Suppose Felix is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns with Felix'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 2/8 8/16 3 2/4 10/20 4 8/10 18/30 8/10 26/40 On the following graph, use the orange points (square symbol) to plot Felix'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 Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 100 90 Game Free-Throw Percentage 80 70 60 Average Free-Throw Percentage 50 40 E-THROW PERCENTAGE

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Consider the following scenario to understand the relationship between marginal and average values. Suppose Felix is a professional basketball player,
and his game log for free throws can be summarized in the following table.
Fill in the columns with Felix'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
3
2/4
10/20
8/10
18/30
5
8/10
26/40
On the following graph, use the orange points (square symbol) to plot Felix'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 connected. Line segments will connect the points automatically.
100
90
Game Free-Throw Percentage
80
70
60
Average Free-Throw Percentage
50
40
E-THROW PERCENTAGE
Transcribed Image Text:Consider the following scenario to understand the relationship between marginal and average values. Suppose Felix is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns with Felix'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 3 2/4 10/20 8/10 18/30 5 8/10 26/40 On the following graph, use the orange points (square symbol) to plot Felix'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 connected. Line segments will connect the points automatically. 100 90 Game Free-Throw Percentage 80 70 60 Average Free-Throw Percentage 50 40 E-THROW PERCENTAGE
On the following graph, use the orange points (square symbol) to plot Felix'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 connected. Line segments will connect the points automatically.
(?)
100
90
Game Free-Throw Percentage
80
70
60
Average Free-Throw Percentage
50
40
30
20
10
1
2
3
GAME
You can think of the result in any one game as being Felix's marginal free-throw percentage. Based on your previous answer, you can deduce that
when Felix'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 curve, when the marginal cost curve is below the average total
cost curve, the average total cost must be 2
cost must be ▼. Therefore, the marginal cost curve intersects the average total cost curve
Also, when the marginal cost curve is above the average total cost curve, the average total
FREE-THROW PERCENTAGE
Transcribed Image Text:On the following graph, use the orange points (square symbol) to plot Felix'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 connected. Line segments will connect the points automatically. (?) 100 90 Game Free-Throw Percentage 80 70 60 Average Free-Throw Percentage 50 40 30 20 10 1 2 3 GAME You can think of the result in any one game as being Felix's marginal free-throw percentage. Based on your previous answer, you can deduce that when Felix'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 curve, when the marginal cost curve is below the average total cost curve, the average total cost must be 2 cost must be ▼. Therefore, the marginal cost curve intersects the average total cost curve Also, when the marginal cost curve is above the average total cost curve, the average total FREE-THROW PERCENTAGE
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