Consider the following scenario to understand the relationship between marginal and average values. Suppose Charles is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns with Charles's free-throw percentage for each game and his overall free-throw average after each game. Game Game Result Season Total Game Free-Throw Percentage Average Free-Throw Percentage 1 8/10 8/10 2 4/10 12/20 3 2/8 14/28 4 2/4 16/32 5 6/8 22/40 80 80 On the following graph, use the orange points (square symbol) to plot Charles'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. FREE-THROW PERCENTAGE 100 90 80 Game Free-Throw Percentage 70 60 Average Free-Throw Percentage 50 40 30 20 10 2 GAME 3 You can think of the result in any one game as being Charles's marginal free-throw percentage. Based on your previous answer, you can deduce that when Charles'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 tota cost curve, the average total cost must be . Also, when the marginal cost curve is above the average total cost curve, the average total Therefore, the marginal cost curve intersects the average total cost curve_ cost must be
Consider the following scenario to understand the relationship between marginal and average values. Suppose Charles is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns with Charles's free-throw percentage for each game and his overall free-throw average after each game. Game Game Result Season Total Game Free-Throw Percentage Average Free-Throw Percentage 1 8/10 8/10 2 4/10 12/20 3 2/8 14/28 4 2/4 16/32 5 6/8 22/40 80 80 On the following graph, use the orange points (square symbol) to plot Charles'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. FREE-THROW PERCENTAGE 100 90 80 Game Free-Throw Percentage 70 60 Average Free-Throw Percentage 50 40 30 20 10 2 GAME 3 You can think of the result in any one game as being Charles's marginal free-throw percentage. Based on your previous answer, you can deduce that when Charles'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 tota cost curve, the average total cost must be . Also, when the marginal cost curve is above the average total cost curve, the average total Therefore, the marginal cost curve intersects the average total cost curve_ cost must be
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider the following scenario to understand the relationship between marginal and average values. Suppose Charles is a professional basketball
player, and his game log for free throws can be summarized in the following table.
Fill in the columns with Charles's free-throw percentage for each game and his overall free-throw average after each game.
Game Result Season Total Game Free-Throw Percentage Average Free-Throw Percentage
Game
1
8/10
8/10
2
4/10
12/20
3
2/8
14/28
4
2/4
16/32
5
6/8
22/40
80
80
On the following graph, use the orange points (square symbol) to plot Charles'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.
FREE-THROW PERCENTAGE
100
90
80
60
50
40
30
2 % 2 % 2 % 22
20
10
0
0
1
2
3
5
GAME
Game Free-Throw Percentage
Average Free-Throw Percentage
?
You can think of the result in any one game as being Charles's marginal free-throw percentage. Based on your previous answer, you can deduce that
when Charles'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
. 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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