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

Multiple Choice

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.