If a firm makes negative short run profits, it will exit the industry in the long run.

Name: If a firm makes negative short run profits, it will exit the industry in the long run.
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In the long run, a firm will exit the industry if it cannot cover its total costs, not just because it makes negative short-run profits. If it expects future profitability, it may remain in the industry.

If a Firm Makes Negative Short Run Profits, It Will