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Price of fertilizer compare to the average total cost

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Reference no: EM131706298

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?

b. Draw two graphs side-by-side, illustrating the present situation for the typical firm and for the market.

Reference no: EM131706298

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