13. Firms in Competitive MarketsThe 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.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.Price and CostsLC+MCATCFirmLAVCI?PriceP₁₂DemandMarketIIS₁52(?) Price and CostsMCATC--+LAVCIIIII1QuantityIf firms in the market are producing output but are currently making economic losses,market, and indicates the corresponding supply curve.O The total quantity supplied to the market will decrease.O Marginal cost will decrease.PriceThe quantity supplied by each firm will decrease.UThe price of fertilizer will increase.Average total cost will decrease.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 longrun? Check all that apply.Quantityillustrates the present situation for the typical firm in the

Perfect competition refers to the market scenario in which there large number of buyers and sellers…

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. 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 1 ? Demand Market S₁/ (?)