3. The relationship between marginal and average costs The following scenario examines the relationship between marginal and average values. Suppose Riley is a high school basketball player. The following table presents their game-by-game results for foul shots. Fill in the columns with Riley'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 6/8 6/8 75 75 2 2/8 8/16 3 2/4 10/20 4 8/10 18/30 5 8/10 26/40On the following graph, use the orange points (square symbol) to plot Ri'leyfs foulshooting percentage for each game individually, and use the green points (triangle symbol) to plot Riley's overall average foul-shooting 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. 100 -0 90 Game Foul-Shooting Percentage 80 70 Average Foul-Shooting Percentage 60 50 FREE-THROW PERCENTAGE 40 30 20 10 2 3 4 GAMEYou can think of the result in any one game as being Riley's marginal shooting percentage. Based on your previous answer, you can deduce that when Riley's marginal shooting percentage is below the average, the average must be V . You can now applilr this analysis to production costs. For a Ushaped 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 . You can think of the result in any one game as being Riley's marginal shooting percentage. Based on your previous answer, you can deduce that when Riley's marginal shooting percentage is below the average, the average must be V . You can now apply this analysis to production costs. For a Ushaped average to . C} curve, when the marginal cost curve is below the average t curve is above the average total cost curve, the average - - total cost curve V . total cost curve, the average total cost must be V . Also, when the ma total cost must be V . Therefore, the marginal cost curve intersects th- You can think of the result in any one game as being Riley's marginal shooting percentage. Based on your previous answer, you can deduce that when Riley's marginal shooting percentage is below the falling e, the average must be rising You can now apply this analysis to production co 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 total cost must be . Therefore, the marginal cost curve intersects the average total cost curveYou can think of the result in any one game as being Riley's marginal shooting percentage. Based on your previous answer, you can deduce that when Riley's marginal shootinl nercentage is below the average, the average must be V . falling total cost must be V . Therefore, the marginal cost curve intersects the average total cost curve V . You can now applyr vsis to production costs. For a Ushaped average total cost (ATE) curve, when the marginal cost curve is below the average total cost curve, t e total cost must be V . Also, when the marginal cost curve is above the average total cost curve, the average You can think of the result in any one game as being Riley's marginal shooting percentage. Based on your n deduce that when when the ATE is at 0 Riley's marginal shooting percentage is below the average, the average must be V . at its maximum You can now apply this analysis to production costs. For a Ushaped average total cost (ATE) curve, when is below the average at its minimum total cost curve, the average total cost must be V . Also, when the marginal cost curve is above rve. the average total cost must be 7 . Therefore, the marginal cost curve intersects the average total cost curve V