Tatal Court (53 ATLT AIC Quantity of Automobiles par day Figure 13-6 28. This figure depicts the average total cost functions for a firm that produces automobiles. Refer to the above figure. At what output levels does this firm experience diseconomies of scale? (1 mark) 14 a. output levels below M b. output levels between M and N C. output levels at N d. output levels above N AT MR C 29. Refer to the above figure. What is this firm making? (1 mark) a. a loss equal to the area P"BCX b. a profit equal to the area BOQ C C. a profit equal to the area PBCX d. a loss equal to the area ProQ* X 30. What does a firm that shuts down temporarily still have to pay? (1 mark) a. its variable costs b. its fixed costs c. its total costs d. its marginal costs15 31. Refer to the above figure. In which panel is the firm making a loss? (1 mark) a. panel (a) b. panel (b) c. panel (c) d. both panels (b) and (c) 32. Which of the following can be explained by diminishing marginal product? (1 mark) a. diseconomies of scale b. decreasing marginal cost C. economies of scale d. increasing marginal cost 33. When would one expect to observe diminishing marginal product of labour? (1 mark) a. when crowded factory space reduces the productivity of new workers b. when workers are discouraged about the lack of help from other workers C. when only new workers are trained in using the most productive capital d. when union workers are told to reduce their work effort in preparation for a new round of collective bargaining talks 34. In a competitive market that is characterized by free entry and exit, what will be the result? (1 mark) a. All firms will operate at efficient scale in the short run. b. All firms will operate at efficient scale in the long run. C. The price of the product will differ across firms. d. The number of sellers in the market will steadily decrease over time