1
answer
0
watching
348
views
cyanrat164Lv1
6 Oct 2020
The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently incurring economic losses.
a)How does the price of fertilizer compare with the average total cost, average variable cost, and the marginal cost of producing fertilizer?
b) Draw two graphs, side by side, illustrating the present situation of the typical firm and the market.
c)Assuming there is no change in either demand or the firm's cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, quantity supplied by each firm, and the total quantity supplied by the market.
The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently incurring economic losses.
a)How does the price of fertilizer compare with the average total cost, average variable cost, and the marginal cost of producing fertilizer?
b) Draw two graphs, side by side, illustrating the present situation of the typical firm and the market.
c)Assuming there is no change in either demand or the firm's cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, quantity supplied by each firm, and the total quantity supplied by the market.
Retselisitsoe PokothoaneLv10
7 Nov 2020