In the long run, when there are economic profits, firms enter the industry, which will increase the market supply and price until economic profits are zero.

Name: In the long run, when there are economic profits, firms enter the industry, which will increase the market supply and price until economic profits are zero.
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In the long run, firms entering the industry due to economic profits will increase market supply, leading to a decrease in price until economic profits are zero.

In the Long Run, When There Are Economic Profits, Firms