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  3. 3 the relationship between margi nal and average costs consider...

Question: 3 the relationship between margi nal and average costs consider...

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3. The relationship between margi nal and average costs Consider the following scenario and his game log for free throws can be summarized in the following table. to understand the relationship between marginal and average values. Suppos e Nick is a professional basketball player Fill in the columns with Nicks free-throw percentage for each game and his overall free-throw average after each game. Game Game Result Tota Game Free-Throw Percentage Average Free-Throw Percentage 4/5 2/5 1/4 1/2 4/5 6/10 7/14 8/16 12/20 80 80 25 100 On the following graph, use the orange points (square symbol) to plot Nicks 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 80 Average Free-Throw Percentage 50 30 10 GAME You can think of the result in any one game as being Nicks marginal free-throw percentage. Based on your previous answer, you can deduce that when Nicks 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 average total cost must be Also, when the marginal cost curve is above the average total cost curve, the Therefore, the marginal cost curve intersects the average total cost curve

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