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The chart shows the marginal cost and marginal revenue of producing apple pies.

| Pies produced per day | Total cost | Marginal cost | Total revenue | Marginal revenue | Profit |
|-----------------------|------------|---------------|---------------|------------------|--------|
| 0 | [tex]$0.00 | $[/tex]0.00 | - | - | [tex]$0.00 |
| 1 | $[/tex]1.00 | [tex]$1.00 | $[/tex]10.00 | [tex]$10.00 | $[/tex]8.00 |
| 2 | [tex]$1.50 | $[/tex]0.50 | [tex]$20.00 | $[/tex]10.00 | [tex]$18.50 |
| 3 | $[/tex]1.75 | [tex]$0.25 | $[/tex]30.00 | [tex]$10.00 | $[/tex]28.25 |
| 4 | [tex]$2.25 | $[/tex]0.50 | [tex]$40.00 | $[/tex]10.00 | [tex]$37.75 |
| 5 | $[/tex]3.50 | [tex]$1.25 | $[/tex]50.00 | [tex]$10.00 | $[/tex]46.50 |
| 6 | [tex]$5.00 | $[/tex]1.50 | [tex]$60.00 | $[/tex]10.00 | [tex]$55.00 |

What most likely will happen if the pie maker bakes a seventh pie?
A. The marginal cost will most likely decrease to $[/tex]1.00.
B. The marginal cost will most likely increase to [tex]$2.00.
C. The marginal revenue will most likely decrease to $[/tex]8.00.



Answer :

GinnyAnswer
To determine what is likely to happen if the pie maker bakes a seventh pie, we need to predict the changes in the marginal cost and marginal revenue. Below are the steps to arrive at the conclusion:

1. Current Data Analysis:
- For the sixth pie, the marginal cost is \[tex]$1.50, and the marginal revenue is \$[/tex]10.00.

2. Prediction for the Seventh Pie:
- Marginal cost for the seventh pie: [tex]\(\$ 2.00\)[/tex]. This indicates an increase from the marginal cost of the sixth pie.
- Marginal revenue for the seventh pie: [tex]\(\$ 8.00\)[/tex]. This indicates a decrease from the marginal revenue of the sixth pie.

3. Conclusion:
- The marginal cost most likely will increase to \[tex]$2.00. - The marginal revenue most likely will decrease to \$[/tex]8.00.

These predictions are based on the observed patterns in the data where the marginal cost tends to increase and the marginal revenue tends to decrease as more pies are produced. The data suggest that continuing to produce more pies will result in higher marginal costs and lower marginal revenues.

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