D (a] 2 11 If there are no fixed costs than we know that O average total cost cannot be compared to average variable cost. average total cost is more than average variable cost. O average total cost is equal to average variable cost. average total cost is less than average variable cost. D 10] 12 19 If a company increases its production by 50 units and its total costs increase by $500 then all else the same O marginal costs of production cannot be determined. marginal costs of production must be $0. marginal costs of production are $10. marginal cost of production are $45. D 10 Ra 13 Producing 100 gizmos costs $100 and producing 120 gizmos costs $160. That means the marginal cost of a gizmo is O $2.00 $6.50 O $1.33 $3.00 D 10 52 14 19 If the marginal cost is $120 and the average total costs are $150 then we know that average total costs will fall. fixed costs must be falling. average variable costs are rising. O total costs must be falling 10] : 15 1 5) If the marginal cost is $67 and the average total costs are $67 then we know that average fixed costs must be zero. there is no diminishing marginal product of labor. implicit costs are zero. production is at the efficient scale