Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.FREE-THROW PERCENTAGE1009080706050403010002GAME34Game Free-Throw PercentageAverage Free-Throw PercentageYou 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 thatwhen Paolo's marginal free-throw percentage is below the average, the average must beYou 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 averagetotal cost curve, the average total cost must beAlso, when the marginal cost curve is above the average total cost curve, the averageTU Therefore, the marginal cost curve intersects the average total cost curvetotal cost must be 3. The relationship between marginal and average costsConsider the following scenario to understand the relationship between marginal and average values. Suppose Paolo is a professional basketballplayer, 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 Percentage6/8758/1610/2018/3026/40Game12345RCENTAGE6/82/82/48/108/10On the following graph, use the orange points (square symbol) to plot Paolo's free-throw percentage for each game individually, and use the greenpoints (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.9075Game Free-Throw PercentageAAverage Free-Throw Percentage

Game Game Result Total Game Free-Throw Percentage Average Free-Throw Percentage 1 6/8 6/8…

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

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

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 11SCQ: The state of Colorado requires oil and gas companies who use fracking techniques to retune the land...

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What are diminishing marginal returns?
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