Refer to the Accompanying Graph to Answer the Following Questions

Refer to the accompanying graph to answer the following questions.

-The average total cost (ATC) and average variable cost (AVC) converge as the level of output produced increases because

A) the firm is able to purchase more capital and exploit economies of scale.
B) the firm experiences gains in productivity from employee specialization.
C) average total cost decreases as output increases.
D) average fixed cost decreases as output increases.
E) the firm is able to drive its competitors out of business by lowering its price.