If Papagna's Pizza Parlor knows that the marginal cost of the 500ᵗʰ pizza is $3.00 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
E) average variable costs must be rising
Correct Answer:
Verified
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