**Competitive Market Analysis for Steel Production Costs**In the competitive market for steel, each firm in the industry, regardless of the number of firms, encounters identical cost curves. The following graph illustrates these costs, which include the marginal cost (MC), average total cost (ATC), and average variable cost (AVC).**Graph Analysis:**- **Axes:** - The x-axis represents the "QUANTITY" of steel produced, measured in thousands of tons (ranging from 0 to 100). - The y-axis indicates "COSTS" in dollars per ton (ranging from 0 to 100).- **Curves:** - **Marginal Cost (MC):** Illustrated by the orange curve, starts high, dips significantly around 30 thousand tons, and rises steeply again. - **Average Total Cost (ATC):** Shown in green, descending initially, reaches a minimum point around 40-50 thousand tons, then ascends. - **Average Variable Cost (AVC):** Shown in purple, follows a similar shape to the ATC but starts and remains lower, also reaching its lowest around 40-50 thousand tons before increasing.Each curve is marked with square points highlighting significant intersections or points of interest where these costs interact or change trends.In understanding this graph, firms can determine the most cost-effective production levels and make informed decisions to maximize efficiency and profitability in the steel market. This educational module involves plotting short-run industry supply curves for the steel market under different market conditions. The graph provided shows the relationship between price (in dollars per ton) and quantity (in thousands of tons).### Graph Details:- **Axes:** - **X-axis:** Quantity (Thousands of tons, ranging from 0 to 1250). - **Y-axis:** Price (Dollars per ton, ranging from 0 to 100).- **Curves and Points:** - **Demand Curve:** Illustrated as a continuous blue line showing a downward slope, indicating the typical inverse relationship between price and quantity demanded. - **Supply Curves:** Represented by three sets of points with different colors: - **Orange Squares:** Supply curve for 10 firms. - **Purple Diamonds:** Supply curve for 15 firms. - **Green Triangles:** Supply curve for 20 firms. ### Instructions:- Use the orange, purple, and green points to plot the short-run industry supply curves for 10, 15, and 20 firms, respectively. Disregard portions of the supply curves where no output exists.### Questions:1. **Market with 10 Firms:** - Determine the short-run equilibrium price per ton of steel and predict firm behavior at this price. - Decide whether firms enter or exit the market in the long run.2. **Long-Run Analysis:** - Determine the long-run equilibrium price, considering competitive markets yield zero economic profit in the long run. - Calculate the number of firms operating in long-run equilibrium based on the graph.3. **True or False:** - Evaluate whether each firm in the industry earns positive accounting profit in the long run, assuming positive implicit costs.This exercise helps in understanding competitive markets and equilibrium concepts in microeconomics.

Supply And Demand: The term demand refers to the willingness of an individual to purchase a particular commodity product at a given market price, thus referring to the demand for a commodity. On the other side, the term supply refers to the situation under which a seller produces a product in the market at a certain fixed price, thus referring to the quantity supplied for a commodity. Firstly, the quantity supplied through tabular data: Now, graphic above figures:Therefore, from the above-shown diagram, if there were 10 firms in this market, the short-run equilibrium price of steel would be ($40) because here the price reflects a greater margin over the average cost, as mentioned above the steel firm is operating under perfect market, thus earning a profit, in the long run, will attract the new firms in the market as there are no restrictions for new firms to enter.Because you know that competitive firms earn (ZERO) economic profit in the long run and the long-run equilibrium price would be ($30) because, in the long run, the production for perfect market occurs when the average cost remains to its minimum. Now, from the graph shown above, there will be 15 firms operating in the steel industry in the long-run equilibrium where the price set is $30. According to these observations; Each of the firms operating in this industry, in the long run, earns positive accounting profit, thus this statement stands FALSE.