Intro to microeconomics The market for fertilizer is perfectly competitive. Firms in the market are producing
output and are currently making positive economic profit.
a. How does the price of fertilizer compare to the Average total Cost, Average Variable Cost, and the marginal cost of
producing fertilizer? (10 points)
b. Draw two graphs side-by-side, illustrating the present situation for the typical firm and
for the market. (10 points)
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