Question: Which of these statements is true regarding fixed and variable costs? 1. Fixed costs increase and variable costs decrease in total as activity volume decreases.

Which of these statements is true regarding fixed and variable costs?
1. Fixed costs increase and variable costs decrease in total as activity volume decreases.
2. Both fixed and variable costs stay the same in total as activity volume increases.
3. Both fixed and variable costs increase as activity volume increases.
4. Fixed costs stay the same and variable costs increase in total as activity volume increases.

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