Question 11 (1 point) What is happening when marginal cost is less than average total cost? 0 Marginal cost must be falling. 0 Average variable cost must be falling. 0 Average total cost must be falling. O Marginal cost must be rising. Question 12 (1 point) Figure 13-5 The curves in this figure reflect information about the average total cost, average fixed cost, average variable cost, and marginal cost for a firm. Cost ($) Quantity of Output Refer to Figure 13-5. Which of the curves is most likely to represent average fixed cost? A O BRefer to Figure 13-5. Which of the curves is most likely to represent average xed cost? Question 13 (1 point) Figure 14-2 MC ATC X MR B C Refer to Figure 14-2. What is this firm making? O a loss equal to the area P XBC a profit equal to the area BCOQ* O a profit equail to the area P*XBC O a loss equal to the area P*XOQ*Question 14 (1 point) Figure 15-4 The figure below reflects the cost and revenue structure for a monopoly firm. Cost and Revenue ($) Curve C Curve D P2 + P1 Po + Qo 21 Q2 Q3 Q4 QuantityRefer to Figure 15-4. If the monopoly firm is currently producing Q3 units of output, What will a decrease in output necessarily cause profit to do? 0 decrease O remain unchanged 0 increase as long as the new level of output is at least Q] Q increase as long as the new level of output is at least Q2 Question 15 (1 point) Figure 15-6 The figure depicts the demand, marginal-revenue, and marginal-cost curves of a profit-maximizing monopolist. Price Marginal Cost Demand Marginal Revenue QuantityRefer to Figure 15-6. What is total surplus lost due to monopoly pricing? O triangle bde O triangle bge O rectangle acdb O rectangle cfgdQuestion 16 (5 points) Pick any sector. It could be healthcare, energy, education, telecommunications, professional sports, music etc.; whatever you please! Then: 1) Answer the extent to which you think the sector is likely to suffer from market failures. If you think market failures are extensive, provide two examples. If not, provide an argument for why two of the typical market failures are less relevant. 2) Do a brief scan of the level of government involvement in that sector in Canada. Are there relevant regulations on price, taxes and/or subsidies, quotas, international trade, or other regulations? Then answer whether you think the (likely) extent of market failures explains government intervention in that sector? 3) Provide a normative argument for what you think the appropriate role for government in that sector is. That is, answer the question: shouldthe government intervene with one of the policies we studied, or leave the market unimpeded? While your argument will necessarily be normative, it must reference positive outcomes that our theory says government interventionon-intervention would produce. Your response should be between 250-500 words