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

question 89

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 costs are rising at Q = 500.
• B)average 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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