Matt's factory rents equipment for manufacturing sports bags and hires students.

The table gives$$ Matt's average total cost schedule and average variable cost schedule.

$$

The output at which average variable cost is a minimum is smaller than the output at which average total cost is a minimum because initially when decreasing marginal returns set$$ in$,\_\_\_\_\_\_.$ Total product

$($sports bags

per$$ day$)$

Average variable cost

Average

total cost

$($dollars per sports$$ bag$)$

$3$

$7\mathrm{.}00$

$19\mathrm{.}00$

$4$

$5\mathrm{.}50$

$14\mathrm{.}50$

$5$

$5\mathrm{.}00$

$12\mathrm{.}20$

$6$

$5\mathrm{.}50$

$11\mathrm{.}50$

$7$

$7\mathrm{.}00$

$12\mathrm{.}10$

$8$

$9\mathrm{.}50$

$14\mathrm{.}00$

$9$

$13\mathrm{.}00$

$17\mathrm{.}00,$ A$.$

average variable cost is decreasing at a faster rate than average fixed cost is increasing

B$.$

total variable cost is decreasing at a faster rate than total fixed cost is increasing

C$.$

average fixed cost is decreasing at a faster rate than average variable cost is increasing

D$.$

total fixed cost initially increases and then decreases

E$.$

total fixed cost is decreasing at a faster rate than total variable cost is increasing

$.$

$.$

$.$

Question content area right

Part $1$