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the market for fertilizer is perfectly competitive. Firms in the market are producing output but they are currently making economic losses.
a) draw two graphs side by side, illustrating the present situation for the typical firm in the market.
b) Assuming there is no change in demand or the firms 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 to the market.
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