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Business, 08.02.2021 22:20 hgfughi

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 variable cost. The price of fertilizer must be less than average total cost. The price of fertilizer must be equal to marginal cost. The following graphs show the cost curves faced by a typical firm, the demand for fertilizer, and possible price and supply curves. Firm Price and Costs Quantity MC ATC AVC P 2 P 1 Market Price Quantity Demand S 2 S 1 P 2 P 1

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The market for fertilizer is perfectly competitive. Firms in the market are producing output but are...

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