Which of the Following Statements Is (Are) TRUE

Multiple Choice

Which of the following statements is (are) TRUE?
I. If TC = $40,000 and FC = $18,000, then VC = $58,000.
II. Because fixed cost does not vary with output, the fixed cost curve is a vertical line.
III. The total cost and variable cost curves always have the same shape and slope.
IV. When output is zero, total cost equals fixed costs.

A) I, II, and III
B) III
C) II, III, and IV
D) III and IV