Which one of the following does not occur in the long run when firms in a market make an economic profit?

Question

Quizplus · Accepted Answer

When firms in a market make an economic profit in the long run, there is an incentive for new firms to enter the market, increasing the market supply and shifting the market supply curve rightward. As a result, the market price falls, and each firm reduces its economic profit. However, increasing production goes against the logic of profit maximization since producing more will only decrease the market price further, reducing the profit for individual firms. Therefore, each firm will not increase production in the long run.

Which One of the Following Does Not Occur in the Long