the cost of pie production\npies produced per day total cost marginal cost\n0 pies $0.00 $0.00\n1 pie $1.00…

the cost of pie production\npies produced per day total cost marginal cost\n0 pies $0.00 $0.00\n1 pie $1.00 $1.00\n2 pies $1.50 $0.50\n3 pies $1.75 $0.25\n4 pies $2.25 $0.50\n5 pies $3.50 $1.25\n6 pies $5.00 $1.50\nthis chart demonstrates that the marginal cost\ninitially decreases as production increases.\ninitially increases as production increases.\neventually decreases as production increases.\neventually increases as production decreases.

the cost of pie production\npies produced per day total cost marginal cost\n0 pies $0.00 $0.00\n1 pie $1.00 $1.00\n2 pies $1.50 $0.50\n3 pies $1.75 $0.25\n4 pies $2.25 $0.50\n5 pies $3.50 $1.25\n6 pies $5.00 $1.50\nthis chart demonstrates that the marginal cost\ninitially decreases as production increases.\ninitially increases as production increases.\neventually decreases as production increases.\neventually increases as production decreases.

Answer

Explanation:

Step1: Analyze marginal - cost values

When production goes from 0 to 1 pie, marginal cost is $1.00. From 1 to 2 pies, it is $0.50. From 2 to 3 pies, it is $0.25.

Step2: Observe the trend

The marginal - cost values are $1.00, $0.50, $0.25 for the initial increases in production (from 0 to 3 pies).

Step3: Determine the trend conclusion

The marginal cost initially decreases as production increases.

Answer:

initially decreases as production increases.