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 LRATC3.It might look this way because the firm

A) is able to pay its employees less.
B) adds several additional layers of management,which increase its costs.
C) is able to reduce its tax burden.
D) is able to produce output more efficiently.
E) is able to sell more output.