Names: ____________________	____________________	____________________

Lab 2: Total value and marginal/average value diagrams

Tips to keep in mind:
Total value (TV) diagram:
  Marginal value (MV): MV = slope of the TV curve
  Critical value: MV changes direction where TV has an inflection point (an inflection point occurs where the behavior of the slope reverses)
  Average value (AV):  AV = slope of ray from the origin to the TV curve
  Critical value: AV changes direction where ray is tangent to TV curve

Unit value diagram: the relationship between MV and AV:
  AV falls if and only if MV < AV
  AV rises if and only if MV > AV
  AV remains constant if and only if MV = AV