3. The relationship between marginal and average costs The following scenario examines the relationship between marginal and average values. Suppose Parker is a high school basketball player. The following table presents their gamebygame results for foul shots. Fill in the columns with Parker's foul-shooting percentage for each game and their overall foul-shooting average after each game. Game Game Result Total Game Foul-Shooting Percentage Average Foul-Shooting Percentage 1 8/10 8/10 80 80 2 6/10 14/20 3 1/5 15/25 4 3/5 18/30 5 8/10 26/40 On the following graph, use the orange points (square symbol) to plot Parker's foulshooting percentage for each game individually, and use the green points (triangle symbol) to plot Parker's overall average foulshooting 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. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 100 90 Game Foul-Shooting Percentage 80 A 70 60 Average Foul-Shooting Percentage 50 FREE-THROW PERCENTAGE 40 30 20 10 0 2 3 4 GAMEYou can think of the result in any one game as being Parker's marginal shooting percentage. Based on your previous answer, you can deduce that when Parker's marginal shooting percentage is below the average, the average must be V . 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 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