Production Function

Q. The passage suggests that which of the following is true of a manufacturer's fixed and sunk costs?

1. The extent to which they are determined by market conditions for the goods being manufactured is frequently underestimated.
2. If they are kept as low as possible, the manufacturer is very likely to realize significant profits.
3. They should be on a par with the fixed and sunk costs of the manufacturer's competitors.
4. They are the primary factor that determines whether a manufacturer will realize economies of scale.
5. They are not affected by fluctuations in a manufacturing plant's throughput.