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Explanation:

In order to have the total number of notes to be dispensed is the smallest possible, notes of denomination Rs. 500 has to be maximum.

The ATM machine could have dispensed 10 notes of 500 rupee to the customers who gave 500 rupee notes as their preference.

Therefore, the number of 500 rupee notes required to serve these 50 customers = 10 × 50 = 500

The ATM machine could have dispensed 10 notes of 100 rupee and 8 notes of 500 rupee to the customers who gave 100 rupee notes as their preference.

Therefore, the number of 500 rupee notes required to serve these 50 customers = 8 × 50 = 400

Total number of 500 rupee notes required = 500 + 400 = 900

Hence, option (c).

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