One of the Major Reasons for the U-Shaped Average Total

Multiple Choice

One of the major reasons for the U-shaped average total cost curve is the fact that

A) there are increasing returns from labor regardless of the number of workers employed.
B) there eventually are decreasing returns from labor as more workers are employed.
C) prices fall as output increases.
D) the average fixed cost increases as more output is produced.
E) the variable cost decreases as more output is produced.