According to the graphical representation shown above, it can be inferred that the marginal cost begins to increase when the producer makes four pies. Hence, option C is correct.
What is the marginal cost?
The additional cost derived by a producer or manufacturer to produce an additional unit of a product, which was already under production, is known as the marginal cost.
In the given graph, it can be seen that the marginal cost constantly decreases upon production of 3 pies, however, increases significantly after production of an additional pie, i.e., 4th pie.
Hence, option C holds true regarding the marginal cost.
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