Question

5. Marginal versus average effects Consider the nonlinear function shown by the blue curve on the following graph. The grey line is tangent to this curve at point A. Use the grey line (star point) to answer the following question. (Note: You will not be graded on your placement of this line.) 10 9 8 7 6 5 A + line Slope: 0.63 f(X) 0 0 1 2 3 4 5 6 7 8 9 10 X The marginal effect of X on Y at point A is The average effect of X on Y at point A is True or False: For this graph, the marginal effect increases as X increases. O True O False Scratch Line ?

          5. Marginal versus average effects
Consider the nonlinear function shown by the blue curve on the following graph. The grey line is tangent to this curve at point A.
Use the grey line (star point) to answer the following question. (Note: You will not be graded on your placement of this line.)
10
9
8
7
6
5
A
+
line
Slope: 0.63
f(X)
0
0
1
2
3
4
5
6
7
8
9
10
X
The marginal effect of X on Y at point A is
The average effect of X on Y at point A is
True or False: For this graph, the marginal effect increases as X increases.
O True
O False
Scratch Line
?

5. Marginal versus average effects
Consider the nonlinear function shown by the blue curve on the following graph. The grey line is tangent to this curve at point A.
Use the grey line (star point) to answer the following question. (Note: You will not be graded on your placement of this line.)
10
9
8
7
6
5
A
+
line
Slope: 0.63
f(X)
0
0
1
2
3
4
5
6
7
8
9
10
X
The marginal effect of X on Y at point A is
The average effect of X on Y at point A is
True or False: For this graph, the marginal effect increases as X increases.
O True
O False
Scratch Line
?

Added by Lisa D.

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