The Below Figure Shows the Various Combinations of the Goods

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-If an average cost curve is U-shaped, then:

A) costs per unit remainconstant throughout the entire range of production.
B) costs per unit fall throughout the entire range of production.
C) costs per unit increase throughout the entire range of production.
D) costs per unit first rise, then reach a maximum, and then begin to fall as output is increased.
E) costs per unit first fall, then reach a minimum, and then increase as output is increased.