7. Short-run supply and long-run equilibriumConsider the perfectly competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry isidentical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph.If there were 20 firms in this market, the short-run equilibrium price of steel would be $ per tonne. At that price, firms in this industry would_ ?. Therefore, in the long run, firms would_? the steel market.Because you know that perfectly competitive firms earneconomic profit in the long run, you know the long-run equilibrium price mustper tonne. From the graph, you can see that this means there will be_ ? firms operating in the steel industry in long-runequilibrium.True or False: Each of the firms operating in this industry in the long run earns positive accounting profit.TrueFalse