Consider the following statements concerning break-even charts:

1. Economies of scale for labour could make the total cost line curve upwards.

2. Lowering the selling price of goods at high levels of activity could make the total revenue line curve downwards.

Are the above statements true or false? (and provide a brief explanation, 5 marks)

Statement 1 Statement 2

A. True True

B. False False

C. False True

D. True False