Refer to the Information Provided in Figure 1

Multiple Choice

Refer to the information provided in Figure 1.5 below to answer the question(s) that follow. Figure 1.5
-Refer to Figure 1.5. In many industries, as firms produce additional units, average costs of production decline as the firm produces an additional unit, but average costs declines by a smaller and smaller amount as production continues to increase. If output is graphed on the horizontal axis and average costs are graphed on the vertical axis, the relationship between average costs and output would be like which of the following Panels?

A) A
B) B
C) C
D) D