If firms exit an market,the

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When firms exit a market, the market supply curve shifts leftward because there are fewer firms producing the good. This reduction in supply also helps to increase the price of the good, which may help to increase the economic profit of the remaining firms. However, the economic profit of the remaining firms may decrease in the long term if new firms enter the market to take advantage of the higher price. The total market output will decrease, not increase, since there are fewer firms producing the good.

If Firms Exit an Market,the