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.
a
Economics
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If the price of gasoline rises sharply and the demand for sports utility vehicles falls, then the two goods are
A) complements. B) normal goods. C) substitutes. D) inferior goods.
Economics