Which of the Following Statements About the Average Total Cost

Multiple Choice

Which of the following statements about the average total cost curve is false?

A) it is initially downward sloping because increases in quantity make the average fixed cost smaller
B) it eventually becomes upward sloping because the law of diminishing returns sets in
C) it is always downward sloping because the average fixed costs will always decrease as quantity increases
D) the marginal cost curve crosses the average total cost curve at the point at which average total cost is minimized