Firm Market Demand S1 ATC Price and Costs Price P 2 AVG MC Quantity Quantity If firms in the market are producing output but are currently making economic losses, P1 illustrates the present situation for the typical firm in the market and S. w indicator the commonnandina runnlu cunmeQuantity Quantity If firms in the market are producing output but are currently making economic losses, P V illustrates the present situation for the typical firm in the market, and S, indicates the corresponding supply curve. Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. The total quantity supplied to the market will decrease. O Marginal cost will decrease. Average total cost will decrease. The quantity supplied by each firm will decrease. The price of fertilizer will increase.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 greater than marginal cost. O The price of fertilizer must be greater than average total cost. The price of fertilizer must be greater than average variable cost. The following graphs show the cost curves faced by a typical firm, the demand for fertilizer, and possible price and supply curves. Firm Market Demand