Answer Happy

Asst # 6 (Ch 07) Consider the following scenario to understand the relationship between marginal and average values. Suppose Musashi is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns with Musashi'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 8/10 14/20 15/25 18/30 26/40 Game 1 2 3 4 5 8/10 6/10 1/5 3/5 8/10 80 80 On the following graph, use the orange points (square symbol) to plot Musashi'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.

Asst # 6 (Ch 07) FREE-THROW PERCENTAGE 100 90 80 70 60 50 40 30 20 10 0 0 1 2 GAME 3 4 5 Game Free-Throw Percentage Average Free-Throw Percentage

Asst # 6 (Ch 07) FREE-THROW # 50 40 30 20 10 0 0 2 GAME 3 5 You can think of the result any one game as being i's marginal free-throw percentage. Based on your previous answer, you can deduce when Musashi'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 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 Therefore, the marginal cost curve intersects the average total cost curve cost must be OneDrive