Use the Following Graph to Answer the Following Questions

Use the following graph to answer the following questions.

-A firm expands its scale of production and finds that its long-run average total cost curve looks like LRATC1.It might look this way because the firm

A) adds several additional layers of management,which increase its costs.
B) is able to pay its employees more.
C) has to pay higher rent.
D) is able to negotiate lower prices with its suppliers.
E) is able to sell more output.