Based on the data provided in the table, we need to predict the most likely scenario for the pie maker if they bake a seventh pie.
First, let’s analyze the trends in the data:
1. Total Cost and Marginal Cost:
- The total cost increases as more pies are produced, but the rate of increase varies.
- The marginal cost is the cost of producing one more pie than the previous number.
- From 0 to 1 pies: Marginal Cost = [tex]$1.00
- From 1 to 2 pies: Marginal Cost = $[/tex]0.50
- From 2 to 3 pies: Marginal Cost = [tex]$0.25
- From 3 to 4 pies: Marginal Cost = $[/tex]0.50
- From 4 to 5 pies: Marginal Cost = [tex]$1.25
- From 5 to 6 pies: Marginal Cost = $[/tex]1.50
- It appears that the marginal cost initially decreases, then increases again as more pies are produced.
2. Total Revenue and Marginal Revenue:
- The total revenue increases linearly with the number of pies produced.
- The marginal revenue is the additional revenue from selling one more pie.
- The marginal revenue for each additional pie remains constant at [tex]$10.00.
Given this pattern, let’s consider the provided options:
- The marginal cost will most likely decrease to $[/tex]1.00:
- This is less likely given the trend of increasing marginal cost as more pies are produced, particularly from 5 to 6 pies where the marginal cost increased from [tex]$1.25 to $[/tex]1.50.
- The marginal cost will most likely increase to [tex]$2.00:
- Given the previous trend where the marginal cost increased consistently as more pies were produced, this seems a plausible continuation.
- The marginal revenue will most likely decrease to $[/tex]8.00:
- The marginal revenue has so far remained constant at [tex]$10.00 for each additional pie. There's no pattern suggesting a decrease.
- The marginal revenue will most likely increase to $[/tex]12.00:
- Similar to the above point, there's no indication from the trend that suggests an increase in marginal revenue, as it has been constant.
Conclusion:
Given that the marginal cost has shown a tendency to increase with the production of more pies, the most likely scenario if the pie maker bakes a seventh pie is:
The marginal cost will most likely increase to $2.00.
