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 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 Therefore, the marginal cost curve intersects the average total cost curve total cost must be

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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
70
60
50
40
30
10
0
0
2
GAME
3
4
Game Free-Throw Percentage
Average Free-Throw Percentage
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
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
TU Therefore, the marginal cost curve intersects the average total cost curve
total cost must be
Transcribed Image Text: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 70 60 50 40 30 10 0 0 2 GAME 3 4 Game Free-Throw Percentage Average Free-Throw Percentage 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 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 TU Therefore, the marginal cost curve intersects the average total cost curve total cost must be
3. The relationship between marginal and average costs
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.
Fill in the columns with Paolo's free-throw percentage for each game and his overall free-throw average after each game.
Game Result Total Game Free-Throw Percentage Average Free-Throw Percentage
6/8
75
8/16
10/20
18/30
26/40
Game
1
2
3
4
5
RCENTAGE
6/8
2/8
2/4
8/10
8/10
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.
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
90
75
Game Free-Throw Percentage
A
Average Free-Throw Percentage
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 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 Result Total Game Free-Throw Percentage Average Free-Throw Percentage 6/8 75 8/16 10/20 18/30 26/40 Game 1 2 3 4 5 RCENTAGE 6/8 2/8 2/4 8/10 8/10 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. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 90 75 Game Free-Throw Percentage A Average Free-Throw Percentage
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