13. Firms in Competitive Markets The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. C] The price of fertilizer must be greater than average variable cost. C] The price of fertilizer must be greater than average total cost. [3 The price of fertilizer must be greater than marginal cost. The following graphs show the cost curves faced by a typical firm, the demand for fertilizer, and possible price and supply curves. Market Firm Demand S2 ATC P P 1 Price Price and Costs P 2 P 2 AVC MC Quantity QuantityIf firms in the market are producing output but are currently making economic losses, V illustrates the present situation for the typical firm in the market, and V indicates the corresponding supply curve. . 1 P1 32 P2