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You can think of the result in any one game as being Frances's marginal free-throw percentage. Based on your previous answer, you can deduce that when Frances'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 total cost must be . Also, when the marginal cost curve is above the average total cost curve, the average Therefore, the marginal cost curve intersects the average total cost curve

You can think of the result in any one game as being Frances's marginal free-throw percentage. Based on your previous answer, you can deduce that when Frances'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 total cost must be . Also, when the marginal cost curve is above the average total cost curve, the average Therefore, the marginal cost curve intersects the average total cost curve

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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relationship between marginal and average costs

Consider the following scenario to understand the relationship between marginal and average values. Suppose Frances is a professional basketball player, and her game log for free throws can be summarized in the following table. Fill in the columns with Frances'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 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 Frances'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.
Transcribed Image Text:Consider the following scenario to understand the relationship between marginal and average values. Suppose Frances is a professional basketball player, and her game log for free throws can be summarized in the following table. Fill in the columns with Frances'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 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 Frances'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.
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 30 20 10 GAME You can think of the result in any one game as being Frances's marginal free-throw percentage. Based on your previous answer, you can deduce that when Frances's marginal free-throw percentage is above the average, 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 FREE-THROW PERCENTAGE
Transcribed Image Text: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 30 20 10 GAME You can think of the result in any one game as being Frances's marginal free-throw percentage. Based on your previous answer, you can deduce that when Frances's marginal free-throw percentage is above the average, 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 FREE-THROW PERCENTAGE
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