Short Answer 
The marginal cost of producing one additional pie decreases with increased production, starting at $1.00 for the first pie and dropping to $0.50 for the second pie. This shows that as more pies are produced, the cost of each additional pie becomes cheaper, indicating economies of scale.
Step 1: Understanding Marginal Cost
Marginal cost refers to the additional cost incurred when producing one more unit of a good or service. In this case, it measures how much it costs to produce each additional pie. For example, the marginal cost of the first pie is $1, indicating that producing this pie costs one dollar.
Step 2: Analyzing the Chart for Production
From the chart, the marginal cost decreases as more pies are produced. The costs are as follows:
- Producing 1 pie costs $1.00
- Producing 2 pies costs $0.50
- Producing 3 pies costs $0.25
This indicates that as production increases, the cost of making each additional pie becomes cheaper.
Step 3: Reporting the Specific Marginal Cost
To answer the question specifically about the marginal cost of producing two pies, it is crucial to highlight that it is $0.50. This means that after making one pie, the cost to make the second pie is lower, reflecting economies of scale as production increases.