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

Multiple Choice

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