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	<title>Your Mileage May Vary &#187; cost curve</title>
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		<title>Plotting Marginal Cost Curves in Excel 2007: A Guide.</title>
		<link>http://dancooper.net.au/2010/01/11/plotting-marginal-cost-curves-in-excel-2007-a-guide/</link>
		<comments>http://dancooper.net.au/2010/01/11/plotting-marginal-cost-curves-in-excel-2007-a-guide/#comments</comments>
		<pubDate>Mon, 11 Jan 2010 06:36:10 +0000</pubDate>
		<dc:creator>Dan</dc:creator>
				<category><![CDATA[business]]></category>
		<category><![CDATA[2007]]></category>
		<category><![CDATA[cost curve]]></category>
		<category><![CDATA[economics]]></category>
		<category><![CDATA[excel]]></category>
		<category><![CDATA[how to]]></category>
		<category><![CDATA[marginal]]></category>

		<guid isPermaLink="false">http://dancooper.net.au/?p=74</guid>
		<description><![CDATA[What follows here is a simple, illustrated guide to creating marginal curves in Excel 2007. As any economist (even those in-training, like myself) know, marginal curves have to be plotted halfway between two discrete points on the x-axis. It&#8217;s simpler than it sounds. Click through for the illustrated instructions!

First of all, you need a table [...]]]></description>
			<content:encoded><![CDATA[<p>What follows here is a simple, illustrated guide to creating marginal curves in Excel 2007. As any economist (even those in-training, like myself) know, marginal curves have to be plotted <i>halfway between</i> two discrete points on the x-axis. It&#8217;s simpler than it sounds. Click through for the illustrated instructions!</p>
<p><span id="more-74"></span><br />
First of all, you need a table of data. Here&#8217;s one I&#8217;ve prepared, showing Quantity, Total Cost, Average Total Cost, Average Variable Cost and Marginal Cost:-<br />
<br />
<a href="http://dancooper.net.au/wp-content/uploads/2010/01/table1.png"><img src="http://dancooper.net.au/wp-content/uploads/2010/01/table1-300x204.png" alt="" title="table1" width="300" height="204" class="aligncenter size-medium wp-image-106" /></a><br />
<br />
And this is what ATC, AVC and MC would look like in a graph:-<br />
<br />
<a href="http://dancooper.net.au/wp-content/uploads/2010/01/graph1.png"><img src="http://dancooper.net.au/wp-content/uploads/2010/01/graph1-300x184.png" alt="" title="graph1" width="300" height="184" class="aligncenter size-medium wp-image-108" /></a><br />
<br />
Except that&#8217;s wrong, because the MC line should start a half-tick to the left of the other data lines. So, how do we do this? The first step is to add another column to our graph. I&#8217;m going to call it MCx. I&#8217;m then going to fill it with the x-axis values for each corresponding MC value. (For large amounts of data, you can usually make this faster by observing that it&#8217;ll be the same as &#8220;Quantity &#8211; .5&#8243;.)<br />
<br />
<a href="http://dancooper.net.au/wp-content/uploads/2010/01/table2.png"><img src="http://dancooper.net.au/wp-content/uploads/2010/01/table2-300x187.png" alt="" title="table2" width="300" height="187" class="aligncenter size-medium wp-image-110" /></a><br />
<br />
Now, here comes the tricky part &#8211; applying the custom x-values to the MC curve <i>without affecting the other data</i>. The first step is to change the type of graph you&#8217;re dealing with. You don&#8217;t actually want a &#8220;line graph&#8221; anymore. What you want is an &#8220;X Y (Scatter)&#8221;, specifically <i>Scatter with Smooth Lines</i>. You can see the graph type you need in the image below.<br />
<br />
<a href="http://dancooper.net.au/wp-content/uploads/2010/01/menu1.png"><img src="http://dancooper.net.au/wp-content/uploads/2010/01/menu1-300x213.png" alt="" title="menu1" width="300" height="213" class="aligncenter size-medium wp-image-111" /></a><br />
<br />
Colours notwithstanding, it looks pretty much like the last graph. Scatter plots have one major advantage though &#8211; you can select a custom x-axis for each set of data! So whilst the ATC and AVC lines will get their x-axis values from the Q column, we can change the MC line to use the MCx column for its x-axis values. To do this, right-click the graph and go to &#8220;Select Data&#8221;. Highlight &#8220;MC&#8221; and click &#8220;Edit&#8221;.<br />
<br />
<a href="http://dancooper.net.au/wp-content/uploads/2010/01/menu2.png"><img src="http://dancooper.net.au/wp-content/uploads/2010/01/menu2-300x214.png" alt="" title="menu2" width="300" height="214" class="aligncenter size-medium wp-image-114" /></a><br />
<br />
Now you can set the x-axis values to the column we created earlier. All you need to do is delete everything in the &#8220;Series X values&#8221; box, and replace it with your own data, in this case everything from F2 to F9.<br />
<br />
<a href="http://dancooper.net.au/wp-content/uploads/2010/01/menu3.png"><img src="http://dancooper.net.au/wp-content/uploads/2010/01/menu3-300x272.png" alt="" title="menu3" width="300" height="272" class="aligncenter size-medium wp-image-116" /></a><br />
<br />
Press OK a couple of times to get out of those menus and your graph will now show the MC line shifted half a tick to the left &#8211; where it&#8217;s supposed to be. Technically this trick can be applied to give ANY data offset values on an axis. The secret really lies in using an X Y Scatter plot.<br />
<br />
<a href="http://dancooper.net.au/wp-content/uploads/2010/01/graph2.png"><img src="http://dancooper.net.au/wp-content/uploads/2010/01/graph2-300x174.png" alt="" title="graph2" width="300" height="174" class="aligncenter size-medium wp-image-118" /></a></p>
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