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The Cost of and Return on Pie Production

[tex]\[
\begin{array}{|c|c|c|c|c|c|}
\hline
\text{Pies produced per day} & \text{Total cost} & \text{Marginal cost} & \text{Total revenue} & \text{Marginal revenue} & \text{Profit} \\
\hline
0 & \$0.00 & \$0.00 & - & - & \$0.00 \\
\hline
1 & \$1.00 & \$1.00 & \$10.00 & \$10.00 & \$9.00 \\
\hline
2 & \$1.50 & \$0.50 & \$20.00 & \$10.00 & \$18.50 \\
\hline
3 & \$1.75 & \$0.25 & \$30.00 & \$10.00 & \$28.25 \\
\hline
4 & \$2.25 & \$0.50 & \$40.00 & \$10.00 & \$37.75 \\
\hline
5 & \$3.50 & \$1.25 & \$50.00 & \$10.00 & \$46.50 \\
\hline
6 & \$5.00 & \$1.50 & \$60.00 & \$10.00 & \$55.00 \\
\hline
\end{array}
\][/tex]

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.
D. The marginal revenue will most likely increase to \$[/tex]12.00.

Sagot :

GinnyAnsweridn
Given the table in the problem, let's carefully examine the situation to determine what will most likely happen if the pie maker bakes a seventh pie.

First, let's summarize the existing data from the table:

- Number of pies produced per day (n): 0 to 6
- Total cost (TC):
- 0 pies: [tex]$0.00 - 1 pie: $[/tex]1.00
- 2 pies: [tex]$1.50 - 3 pies: $[/tex]1.75
- 4 pies: [tex]$2.25 - 5 pies: $[/tex]3.50
- 6 pies: [tex]$5.00 - Marginal cost (MC): The cost of producing one more pie. - 1st pie: $[/tex]1.00
- 2nd pie: [tex]$0.50 - 3rd pie: $[/tex]0.25
- 4th pie: [tex]$0.50 - 5th pie: $[/tex]1.25
- 6th pie: [tex]$1.50 - Total revenue (TR): - 0 pies: - - 1 pie: $[/tex]10.00
- 2 pies: [tex]$20.00 - 3 pies: $[/tex]30.00
- 4 pies: [tex]$40.00 - 5 pies: $[/tex]50.00
- 6 pies: [tex]$60.00 - Marginal revenue (MR): The revenue gained by selling one additional pie. - 1st pie: $[/tex]10.00
- 2nd pie: [tex]$10.00 - 3rd pie: $[/tex]10.00
- 4th pie: [tex]$10.00 - 5th pie: $[/tex]10.00
- 6th pie: [tex]$10.00 - Profit (Total revenue - Total cost): - 0 pies: $[/tex]0.00
- 1 pie: [tex]$9.00 - 2 pies: $[/tex]18.50
- 3 pies: [tex]$28.25 - 4 pies: $[/tex]37.75
- 5 pies: [tex]$46.50 - 6 pies: $[/tex]55.00

Now, we examine the scenario for producing the seventh pie. We must consider the given possible outcomes for marginal cost and marginal revenue:

1. Marginal cost will most likely decrease to [tex]$1.00. 2. Marginal cost will most likely increase to $[/tex]2.00.
3. Marginal revenue will most likely decrease to [tex]$8.00. 4. Marginal revenue will most likely increase to $[/tex]12.00.

From the given data, the trend in marginal costs generally shows an increase after initial fluctuations:

- Marginal cost increases from [tex]$0.25 for the third pie to $[/tex]1.50 for the sixth pie.

Given this trend, option two (the marginal cost will most likely increase to [tex]$2.00) aligns best with the escalating marginal cost pattern observed: ### Thus, if the pie maker bakes a seventh pie, the marginal cost will most likely increase to $[/tex]2.00.
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