A bakery can sell 800 cupcakes at $3 each, or 1,000 cupcakes at $2.50 each. Charging a price of $2.50/cupcake would increase this bakery's profits as long as _____________.

A.

the average costs of cupcakes are less than $3.00.

B.

the marginal costs of cupcakes are less than $0.50.

C.

their current total costs from making cupcakes are less than $2,500.

D.

the marginal costs of cupcakes are less than $2.50.