7. Short-run supply and long-run equilibrium Consider the competitive market for ruthenium. Assume that no matter how many firms operate in the industry, every firm is identical and face same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. If there were 20 firms in this market, the short-run equilibrium price of ruthenium would be per pound. At that price, firms in this industry would Therefore, in the long run, firms would the ruthenium market. Because you know that competitive firms eam economic proft in the long run, you know the long-run equilibrium price must be per pound. From the graph, you can see that this means there will be firms operating in the ruthenium industry in long-run equilibrium. True of False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns negative accounting proft. True False