• The answer to this question is 2. All of these are true.

1.variable costs rise.

• Variable costs are the production costs that change with the level of production. An increase in the level of production results in an increase in variable costs and a decline in the level of production results in a decrease in the variables.

3. fixed costs stay the same.

• Fixed costs are the production costs that remain unchanged regardless of the level of production. Therefore, an increase in production will leave the fixed costs unchanged.

4. total costs increase.

• Total costs incorporate both variable and fixed costs. Since variables costs will increase, the total costs will also rise as production rises.