Figure 14-5 A graph of Cost versus Quantity; cost is on the vertical axis and quantity is on the horizontal axis. The graph shows three cost curves as follows: The MC curve; a U-shaped curve that decreases initially, then reaches a minimum, and then increases. The AVC curve; a U-shaped curve that begins at a slightly higher cost than the MC curve, decreases and reaches a minimum at the intersection of the increasing portion of the MC curve, then increases. The ATC curve; a U-shaped curve that begins at a considerably higher cost than AVC curve, reaches a minimum at the intersection of the increasing portion of the MC curve, then increases. The minimum points of the MC, AVC, and ATC curves are labeled on the horizontal axis accordingly: A, B, and C; the top portion of the MC curve has a point labeled D on the horizontal axis as well. Refer to Figure 14-5. Which of the following statements is correct? a. Marginal cost is minimized at B because at that quantity, marginal cost equals average variable cost. b. Average total cost is declining for quantities less than C because average variable cost is less than average total cost. c. Average variable cost is declining for quantities less than B because marginal cost is lower than average variable cost. d. Marginal cost is rising for quantities higher than D because marginal cost is higher than average total cost