Short-run supply and long-run .
I need answers for this question please on short run and long run equilibrium
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7. Short-run supply and long-run equilibrium Aa Aa EL Consider a perfectly competitive market for steel. Assume that all ﬁrms in the industry are identical and have themarginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph.Assume also that it does not matter how many ﬁrms are in the industry. Tool Tip: Place the mouse cursor over orange square points on the MC curve to see coordinates. COST [Dollars per tonne] 1000MC 900 800 700 600500 ATC £00AVG 300 200 100 0 51015 20 25 30 35 1.0 1.5 50OUTPUT [Thousands of tonnes per day] The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the initialshort-run industry supply curve when there are 20 firms in the market. (Note: Ignore the portion of the supply curvethat corresponds to prices at which there is no output, since this is the industry supply curve.) Next, use the purplepoints (diamond symbol) to plot the short-run industry supply curve when there are 30 ﬁrms. Finally, use the redpoints (cross symbol) to plot the short-run industry supply curve when there are 40 firms.