As Output Increases,average Variable Cost First Declines but Eventually Rises

Multiple Choice

As output increases,average variable cost first declines but eventually rises because

A) average variable cost is derived by dividing a constant, the total variable cost, by the output rate.
B) of the effect of the law of diminishing returns.
C) it represents the addition to total cost resulting from the last unit of output.
D) at higher output rates, fixed costs per unit are relatively large.
E) if output is increased, total variable costs decline, then rise.