1. (5 points) You must come up with an analogy that illustrates relationship between Marginal and Average. We learned that Average and Marginal cost curves intersect at the point of Averages' minimum. We also saw that if MC curve was below AC curve, AC curve was decreasing, and when MC curve was above AC curve, AC was increasing. The analogy provided in class described a situation in which an additional student was taking the test and depending on his grade, class average either decrease or increased or stayed the same. That illustrated to us that if Marginal is greater than average, average increases. If Marginal is less than average, average decreases. If marginal and average are the same, average stays the same. Make sure that your analogy is very specific. You must specify what represents your average and what represents your marginal. You also have to describe when average is increasing and when it is decreasing. Do not use the examples of an actual average and marginal costs. You need to think about an analogy, which is not related to costs and goods being produced.