-The Table Above Gives the Cost Schedule for the X

Multiple Choice

-The table above gives the cost schedule for The X Firm.The data show that The X Firm's ________ curve is ________.

A) ATC; U-shaped because the firm fixed costs are spread over larger amounts of output and the firm experiences decreasing marginal returns
B) AFC; U-shaped because the firm spreads its fixed costs over larger and large amounts of output
C) AVC; always declining because costs are divided across ever-increasing amounts of output
D) MC; U-shaped because explicit costs exceed implicit costs
E) ATC; U-shaped because output increases as costs increase