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. Why is the output at which average variable cost is at a minimum smaller than the output at which average total cost is at a minimum? 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, O A. total fixed cost is decreasing at a faster rate than total variable cost is increasing B. average variable cost is decreasing at a faster rate than average fixed cost is increasing C. total fixed cost initially increases and then decreases D. total variable cost is decreasing at a faster rate than total fixed cost is increasing E. average fixed cost is decreasing at a faster rate than average variable cost is increasing O O O O O O Total product (sports bags per day) 3 4 5 Average variable Average cost total cost (dollars per sports bag) 7.00 19.00 5.50 14.50 5.00 12.20 5.50 11.50 7.00 12.10 9.50 14.00 13.00 17.00 COCO OD 8 9