Figure 5.1 -Refer to Figure 5.1, Which Shows a Family of Average

Figure 5.1
-Refer to Figure 5.1, which shows a family of average cost curves. Why does the vertical distance between Curve 1 and Curve 2 decrease as output increases from Q₁ to Q₂?

A) Because average variable cost first decreases, then increases as output increases from Q₁ to Q₂.
B) Because average fixed cost decreases as output increases from Q₁ to Q₂.
C) Because average total cost first decreases, then increases as output increases from Q₁ to Q₂.
D) Because average variable cost increases faster than average fixed cost as output level approaches Q₂.