Assume that the market for fertilizer is perfectly competitive. Firms in the market are producing output but they are experiencing economic losses.

question: Assuming there is no change in demand curve or in cost curves, explain what should happen in the long run to the price of fertilizer, marginal cost, average total cost, the quantity supplied by each firm, and the total quantity supplied to the market. Redraw the set of diagrams you drew in part c) and show the long-run equilibrium for the firm and the market. Each change on the diagrams should be explained step by step to qualify for full marks.