alleryStart learning →Drive profits to zero step by step
Exercise and reference answers
- Steps
- Demand rises
- Price goes up
- Firms earn profit
- New firms enter
- Supply shifts out
- Price falls back
- Profits reach zero
- Instructions
- Tap the stages in the order a profitable market erases its own profits.
Explanation
_Source: OpenStax Principles of Microeconomics for AP Courses, section 8.3 Entry and Exit Decisions in the Long Run_