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

Brief Explanations:

Examine the marginal - cost values in the table. 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. So, initially as production increases from 0 to 3 pies, the marginal cost decreases.

Answer:

Initially decreases as production increases.