If Franco's Pizza Parlor knows that the marginal cost of the 500^th 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.

Question

Quizplus · Accepted Answer

When the marginal cost ($3.50) is greater than the average total cost ($3.30), the average total cost is rising.

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

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