1. Contrast the effects of changes in the activity level on total fixed costs and on unit fixed costs.
2. J. P. Alexander claims that the relevant range concept is important only for variable costs.
(a) Explain the relevant range concept.
(b) Do you agree with J. P.'s claim? Explain.
3. "The relevant range is indispensable in cost behavior analysis." Is this true? Why or why not?
4. Adam Antal is confused. He does not understand why rent on his apartment is a fixed cost and rent on a Hertz rental truck is a mixed cost. Explain the difference to Adam.