folder/document level permissions in Sharepoint 2010?

Question

Are folder level permissions supported in sharepoint 2010 (Enterprise version)? Or are list/library permissions the lowest level?

If folder level permissions are not supported please suggest ways in which I could achieve the same.

Thanks

Answer 1

Yes, folder level permissions are supported in SharePoint 2010 and 2007 no matter what version you use.

Answer 2

Yes they are supported.

From lowest level to highest level
Item -> Folder ->List/library -> Site -> Site Collection -> Web Application