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 average variable cost.   The price of fertilizer must be less than marginal cost.       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. Average total cost will decrease.   The quantity supplied by each firm will decrease.   The total quantity supplied to the market will decrease.   Marginal cost will decrease.   The price of fertilizer will increase.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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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 average variable cost.
 
The price of fertilizer must be less than marginal cost.
 
 
 
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.
Average total cost will decrease.
 
The quantity supplied by each firm will decrease.
 
The total quantity supplied to the market will decrease.
 
Marginal cost will decrease.
 
The price of fertilizer will increase.
 
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