Question

What most likely will happen if the pie maker bakes a seventh pie? The marginal cost will most likely decrease to $1.00 The marginal cost will most likely increase to $2.00 The marginal revenue will most likely remain the same, not decrease to $8.00. The marginal revenue will most likely remain the same, not increase to $12.00.

Answer 1

Hello Mate ❤️

Answer:

=> The marginal cost will most likely decrease to $1.00 The ... revenue will most likely remain the same, not increases.✨✨✨

Thanks ☺️

Answer 2

Given:

No. of pies previously baked - 6

To find:

Change in the marginal cost if one more pie is baked by the baker.

Solution:

Let the cost of baking each pie be Rs. 10

Number of pies baked previously - 6

$Total \: cost \\ = no. \: of \: pies \times cost \: for \: baking \: each \: pie$

$Total \: cost = 6 \times 10$

$Total \: cost = 60$

Now, let's add one more pie.

$New \: Total \: Cost = 60 + 10$

$New \: Total \: Cost = 70$

For Marginal Cost.

$Marginal \: Cost \\ = \frac{Change \: in \: Total \: Cost}{Change \: in \: the \: number \: of \: pies}$

For the formula,

change in the total cost

$Change \: in \: Total \: Cost = 6 - 7$

$Change \: in \: Total \: Cost = 1$

change in the number of pies baked

$Change \: in \: the \: number \: of \: pies = 7 - 6$

$Change \: in \: the \: number \: of \: pies = 1$

using the formula for marginal cost,

$Marginal Cost. = \frac{1}{1}$

$Marginal Cost. = 1$

Therefore, when the baker started baking one more pie the Marginal Cost decreased to $1.00