-Refer to the graph above to answer this question.Which one of the following statements is correct in the long run?

Question

Quizplus · Accepted Answer

In the long run, if firms are making profits, new firms will enter the industry, increasing the supply of the product. This increased supply leads to a decrease in the price, causing the individual firm's demand curve to shift to the left as each firm gets a smaller share of the market.

-Refer to the Graph Above to Answer This Question