Read and analyze the situation below on the picture. Answer the following questions and explain it. Thank you!

1. As activity decreases, total fixed cost: a) increases proportionately with activity. b) decreases proportionately with activity. c) remains constant. d) decreases by a fixed amount. 2. Which of the following statements is correct with respect to total fixed costs, within the relevant range? a. They will remain the same as production levels change. b. They will decrease as production decreases. c. They will increase as production decreases. d. They will decrease as production increases. 3. Which of the following would be a fixed input to an automobile firm? a. steel b. a factory in Detroit c. car batteries d. engineers