Please answer the following

Determine if the following statements are True or False. 1. The average costs are composed of average variable costs plus average fixed costs 2. Average fixed costs always decline with output and average variable costs always increase with output. 3. The marginal cost curve lies below the average cost curve when average costs are decreasing and above when they are increasing. 7',- a. Statement 1 is true, Statement 2 is true, Statement 3 is false. 7'- b. Statement 1 is false, Statement 2 is true, Statement 3 is true. 7'- c. Statement 1 is false, Statement 2 is false, Statement 3 is true. 7'- d. All statements are false 7'- e. All statements are true QUESTION 2 Determine if the following statements are True or False. 1. Average fixed costs never increase with output. 2. Average total costs are always greater than or equal to average variable costs. 3. Average costs can never rise while marginal costs are declining 7'- a. Statement 1 is true, Statement 2 is true, Statement 3 is false. 7'- b. Statement 1 is false, Statement 2 is true, Statement 3 is true. 7'- c. Statement 1 is false, Statement 2 is false, Statement 3 is true. 7'- d. All statements are false 7' e. All statements are true