If Franco's Pizza Parlor Knows That the Marginal Cost of the 500ᵗʰ

question 452

Multiple Choice

If Franco's Pizza Parlor knows that the marginal cost of the 500ᵗʰ pizza is $3.50 and that the average total cost of making 499 pizzas is $3.30,then

• A) average total costs are rising at Q = 500.
• B) average total costs are falling at Q = 500.
• C) total costs are falling at Q = 500.
• D) average variable costs must be falling.

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Definitions:

Kidney

An organ in vertebrates responsible for filtering waste products from the blood and excreting them in urine, as well as maintaining electrolyte balance.

Ureter

A tube that carries urine from the kidney to the bladder.

Urine

A liquid by-product of metabolism in humans and many animals, excreted by the kidneys and consisting of water, salts, urea, and other waste substances.

Urinary Bladder

Organ where urine is stored.