5. The relationship between marginal and average costs Consider the following scenario to understand the relationship between marginal and average values. Suppose Bob is a professional basketball player, and his game log for Free throws can be summarized in the following table. Fill m the columns with Bob '5 freethrow percentage for each game and his overall freethrow average after each game. Game Game Result Season Total Game Free-Throw Percentage Average Free-Throw Percentage 1 6/8 68 75 75 2 2m 8/15 E E 3 2x4 10120 E E 4 8/10 18/30 S E 5 8/10 26/40 S E On the following graph, use the orange points (square symbol) to plot Bob's freethrow percentage for each game individually, and use the green points ( triangle symbol) to plot his overall average freethrow 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. (9 100 W -I- 90 80 __ Game FreeThrow Percentage m A 60 - Average Free-Throw Percentage 50 -- 40 -- 3E] - FREE-THROW PERCENTAGE 2E] - 10 -- GAME You can think of the result in any.r one game as being Bob's marginal freethrow percentage. Based on your previous answer, you can deduce that when Bob's marginal freethrow percentage is above the average, the average must be V . You can HOW apply this analvsis to production costs. For a Ushaped average total cost a en the marginal cost curve is below the average total cost curve, the average total cost must be V . Also, when the marginal cost c ove the average total cost curve, the average total rising falling cost must be V . Therefore, the marginal cost curve intersects the average to we v. 'I -. Bob's marginal freethrow percentage. Based on your previous answer, you can deduce that falling You can think of the result in any one gam- when Bob's marginal Freethrow percentag - the average, the average must be V . rismg You can nowI apply this analysis to product For a Ushaped average total cost curve, when the marginal cost curve is below the average total cost curve, the average total cost must be V . Also, when the marginal cost curve is above the average total cost curve, the average total cost must be V . Therefore, the marginal cost curve intersects the average total cost curve V . You can think of the result in any;r one game as being Bob's marginal freethrow percentage. Based on your previous answer, you can deduce that when Bob's reethrow percentage is above the average, the average must be 7 . You can now . analysis to production costs. For a Ushapecl average total cost curve, when the marginal cost curve is below the average total rising falling cost curve, t - total cost must be 7 . Also, when the marginal cost curve is above the average total cost curve, the average total cost must be 7 . Therefore, the marginal cost curve intersects the average total cost curve 7 . You can think of the result in any one game as being Bob's marginal freeethrow percentage. Based on e that when the average total cost is at 0 when Bob's marginal treerthrow percentage is above the average, the average must be V . at its minimum You can now apply this analysis to production costs. For a Ushaped average total cost curve, when t -rage total at its maXimum cost curve, the average total cost must be V . Also, when the marginal cost curve is above -ge total cost must be V . Therefore, the marginal cost curve intersects the average total cost curve V