Question

The graph is a marginal cost curve that compares expenses for producing apple pies.

A graph titled Marginal Cost of Producing Pies has quantity supplied on the x-axis, from 0 to 6 pies, and marginal cost on the y-axis, from 0 to 1 dollar and 60 cents in increments of 20 cents. The cost increases from 0 pies to 1 pie and then decreases to 3 pies. The cost again begins to increase at 4 pies.

According to the graph, the marginal cost begins to increase when the producer makes

two pies.
three pies.
four pies.
five pies.

Answer 1

Four pies.

The graph shows marginal cost falling until 3 pies and then rising again starting at the 4th pie, so marginal cost begins to increase at 4 pies.