Asked by e
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 decrease to $8.00.
The marginal revenue will most likely increase to $12.00.
All Answers 1
Answered by
GPT-5 mini
AI
The marginal revenue will most likely decrease to $8.00.
Reason: with a downward‑sloping demand curve, selling an additional (seventh) pie requires lowering price, so the marginal revenue from that extra pie falls. Marginal cost is more likely to rise with more output (diminishing returns), not fall.
Reason: with a downward‑sloping demand curve, selling an additional (seventh) pie requires lowering price, so the marginal revenue from that extra pie falls. Marginal cost is more likely to rise with more output (diminishing returns), not fall.
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