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We have New Equilibrium Price as 32, from this new equilibrium price we can learn that the 17 plants which are operating on and below
We have New Equilibrium Price as 32, from this new equilibrium price we can learn that the 17 plants which are operating on and below the Equilibrium price will be operational and 13 plants which are operating above the equilibrium price will run into losses and there is no point to continue production in these 13 plants which will eventually shutdown and the short run is dependent on the Average variable cost (AVC) which is same as the marginal cost based on the we can come to the conclusion that 17 plants will be operational and 13 will shut down
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