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. The price of fertilizer must be less than average total cost. _ The price of fertilizer must be equal to marginal cost. The price of fertilizer must be less than average variable cost. The following graphs show the cost curves faced by a typical rm, the demand for fertilizer, and possible price and supply curves. Firm Market E Di 8 P1 1: 3 r: ': m n. .5 E P2 1. I I I I Quantity Quantitv If rms in the market are producing output but are currently making economic losses, V illustrates the present situation for the typical rm in the market, and V indicates the corresponding supply curve. Assuming there is no change in either demand or the rm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. Marginal cost will decrease. The quantity supplied by each rm will decrease. The price of fertilizer will increase. _ The total quantity supplied to the market will decrease. Average total cost will decrease