The textbook relates an interesting story concerning how businesspeople view their cost structures.

When asked to identify the shape of their average total cost curve from among eight choices offered, the majority chose the curve that is

a. U-shaped.

b. downward sloping at the outset but quickly becomes upward sloping.

c. upward sloping at the outset but quickly becomes downward sloping.

d. continuously upward sloping until production reaches capacity.

e. continuously downward sloping until production reaches capacity.